8-K

UNITED STATES
‎SECURITIES AND EXCHANGE COMMISSION
‎Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

August 2, 2023

Date of Report (Date of earliest event reported)

                  Lincoln National Corporation             

(Exact name of registrant as specified in its charter)

Indiana	1-6028	35-1140070
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)

150 N. Radnor Chester Road, Radnor, PA 19087

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (484) 583-1400

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

__________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock	LNC	New York Stock Exchange
Depositary Shares, each representing a	LNC PRD	New York Stock Exchange
1/1000th interest in a share of 9.000%
Non-Cumulative Preferred Stock, Series D

__________________________________

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   [ ]

‎

Item 2.02. Results of Operations and Financial Condition.

On August 2, 2023, Lincoln National Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2023, a copy of which is attached as Exhibit 99.1 and is incorporated herein by reference. The Company’s statistical supplement for the quarter ended June 30, 2023, is attached as Exhibit 99.2 and is incorporated herein by reference.

The information, including exhibits attached hereto, furnished under this Item 2.02 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing.

Item 9.01. Financial Statements and Exhibits.

(d)Exhibits.

The following exhibits are being furnished with this Form 8-K.

Exhibit Number	Description
99.1	Press release dated August 2, 2023, announcing Lincoln National Corporation’s financial results for the quarter ended June 30, 2023.
99.2	Lincoln National Corporation Statistical Supplement for the quarter ended June 30, 2023.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

‎

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

LINCOLN NATIONAL CORPORATION
By	/s/ Adam Cohen
Name:	Adam Cohen
Title:	Senior Vice President and Chief
	Accounting Officer

Date: August 2, 2023

EX-99.1

FOR IMMEDIATE RELEASE

Lincoln Financial Group reports SECOND Quarter 2023 Results

____________________________________

v Net income available to common stockholders of $2.94 per diluted share

v Adjusted operating income available to common stockholders of $2.02 per diluted share

v Shifting to a more capital-efficient business mix and executing against our strategic objectives

v High-quality and diversified investment portfolio positions us well for the future

Radnor, PA, August 2, 2023 –  Lincoln Financial Group (NYSE: LNC) today reported net income available to common stockholders for the second quarter of 2023 of $502 million, or $2.94 per diluted share, compared to net income available to common stockholders in the second quarter of 2022 of $833 million, or $4.83 per diluted share. Second quarter adjusted income from operations available to common stockholders was $343 million, or $2.02 per diluted share, compared to adjusted income from operations available to common stockholders of $367 million, or $2.13 per diluted share, in the second quarter of 2022. 

“Our second quarter results reflect the solid progress we are making on our enterprise strategic objectives to improve ongoing free cash flow, reduce capital sensitivity to market volatility and further diversify our business mix,” said Ellen Cooper, Chairman, President and CEO of Lincoln Financial Group. “With a differentiated business model, powerful distribution capabilities, and an investment portfolio of the highest quality it has been in more than a decade, we remain well positioned to drive profitable growth. I am confident that our leadership team will continue to successfully implement our strategy and enhance value for our shareholders.”

	As of or For the				As of or For the
	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in millions, except per share data)	2023		2022 (2)		2023		2022 (2)
Net Income (Loss)	$	511	$	840	$	(370)	$	2,321
Net Income (Loss) Available to Common Stockholders		502		833		(408)		2,314
Net Income (Loss) per Diluted Share Available to Common Stockholders (1)		2.94		4.83		(2.41)		13.25
Revenues		2,929		5,577		6,743		10,297
Adjusted Income (Loss) from Operations		354		374		642		647
Adjusted Income (Loss) from Operations Available to Common Stockholders		343		367		604		640
Adjusted Income (Loss) from Operations per Diluted Share Available to
Common Stockholders		2.02		2.13		3.54		3.67
Average Basic Shares		169.6		171.1		169.5		172.6
Average Diluted Shares		169.9		172.7		170.5		174.6
Net Income (Loss) Return on Equity ("ROE")		32.6%		28.5%		-12.1%		32.1%
Adjusted Income (Loss) from Operations Available to Common Stockholders,
Excluding AOCI and Preferred Stock ROE		14.1%		13.0%		12.3%		11.8%
Adjusted Income (Loss) from Operations ROE		12.4%		10.8%		12.2%		9.6%
Book Value per Share (BVPS), Including AOCI	$	28.49	$	54.81	$	28.49	$	54.81
Book Value per Share, Excluding AOCI		58.58		68.21		58.58		68.21
Adjusted Book Value per Share		64.37		82.78		64.37		82.78
(1) In periods where a net loss or adjusted loss from operations is presented, basic shares are used in the diluted EPS and adjusted diluted EPS
calculations, as the use of diluted shares would result in a lower loss per share.
(2) Prior year numbers have been adjusted to reflect LDTI accounting.

There were no notable items within adjusted income from operations available to common stockholders per share for the current quarter or the prior-year quarter. Adjusted income from operations available to common stockholders per share for the prior-year period included:

· Alternative investment income $(0.13) below targeted levels, and

· Prepayment income of $0.13.

Second Quarter 2023 – Segment Results

Annuities

Annuities reported income from operations of $271 million, down 8% compared to the prior-year quarter. The decrease was primarily due to higher expenses and lower prepayment income.

Total annuity deposits of $2.6 billion were down 5% from the prior-year quarter as sales growth in fixed annuities was more than offset by a decline in sales of variable annuities.Net outflows were $1.1 billion in the quarter compared to net outflows of $285 million in the prior-year quarter.

Average account balances, net of reinsurance, for the quarter of $148 billion were down 1% from the prior-year quarter, while end-of-period account balances, net of reinsurance, increased 7%. Variable annuities with living benefits represented 45% of total annuity account balances net of reinsurance, a decrease of three percentage points compared to the prior-year quarter.

Life Insurance

Life Insurance reported income from operations of $33 million compared to $63 million in the prior-year quarter. The decrease was primarily driven by the run-rate impact from the company’s third quarter 2022 annual review of DAC and reserve assumptions and higher expenses, partially offset by higher alternative investment income. 

Total Life sales of $123 million were down 36% from the prior-year quarter, driven in part by a decline in Executive Benefits which are primarily large deals that can be highly variable quarter to quarter. In addition, Term products and Variable Universal Life sales were lower and Indexed Universal Life were higher given the shift to a more capital-efficient product mix.

Average Life Insurance in-force of $1.1 trillion increased 7% over the prior-year quarter. For the quarter, average account balances, net of reinsurance, were $50 billion, up 1% compared to the prior-year quarter.

Group Protection

Group Protection reported income from operations of $109 million in the quarter compared to income from operations of $49 million in the prior-year quarter. The increase was primarily driven by improved disability and life underwriting results.

The total loss ratio was 71% in the current quarter compared to 79% in the prior-year quarter with the decrease driven by better disability incidence and resolutions and lower mortality in life. The operating margin expanded 450 basis points from the prior-year quarter to 8.6%.

Insurance premiums of $1.3 billion in the quarter were up 6% compared to the prior-year quarter. Group Protection sales for the quarter were $96 million, down 24% compared to the prior-year quarter. Year-to-date Group Protection sales were down 3% compared to the prior-year period. Supplemental Health products grew 52% and represented 20% of total Group Protection sales, compared to 10% in the prior-year quarter.

Retirement Plan Services

Retirement Plan Services reported income from operations of $47 million, down 15% compared to the prior-year quarter. The decrease was primarily driven by higher expenses and lower prepayment income, partly offset by the earnings impact related to positive net flows and higher base spreads.

Total deposits for the quarter of $2.9 billion were down 9% compared to the prior-year quarter, which included a large stable value sale that accounted for about $700 million of the prior-period total deposits. Net flows totaled $201 million for the quarter, contributing to trailing-twelve months’ net flows of $1.6 billion.

Average account balances for the quarter of $94 billion were up 4% from the prior-year quarter primarily driven by favorable equity markets.

Other Operations

Other Operations reported a loss from operations of $106 million versus a loss of $87 million in the prior-year quarter.

Second Quarter Highlights - Realized Gains and Losses / Impacts to Net Income

Realized gains/losses and other impacts to net income (after-tax) in the quarter were primarily driven by:

· A $1.6 billion gain associated with MRB-related impacts driven by favorable equity markets and the rise in interest rates.

· A $708 million loss associated with changes in the fair value of guaranteed living benefits and guaranteed death benefits hedge instruments, net of hedge allowance, primarily a result of the increase in the equity markets and interest rates.

· A $493 million impairment of fixed maturity available-for-sale (“AFS”) securities in an unrealized loss position, resulting from the company’s intent to sell these securities as part of the previously announced Fortitude Re reinsurance transaction. Within the investment portfolio anticipated to be sold in the transaction, there are additional fixed maturity AFS securities in an unrealized gain position of approximately $374 million as of June 30, 2023. Pursuant to the applicable accounting guidance, the company impaired the securities in a loss position down to fair market value upon entry into the agreement in the second quarter and will recognize a gain for any securities in an unrealized gain position at the time when the transaction closes.

· $38 million of net realized credit losses.

Unrealized Gains and Losses

The company reported a net unrealized loss of $10.4 billion, pre-tax, on its available-for-sale securities on June 30, 2023. This compares to a net unrealized loss of $6.3 billion, pre-tax, on June 30, 2022, with the year-over-year decrease primarily driven by higher treasury rates.

Book Value

Versus the prior-year period, as of June 30, 2023, book value per share, including AOCI, decreased 48% to $28.49, book value per share, excluding AOCI, decreased 14% to $58.58 and adjusted book value per share decreased 22% to $64.37.

The tables attached to this release define and reconcile the non-GAAP measures adjusted income (loss) from operations, adjusted income (loss) from operations available to common stockholders, adjusted income (loss) from operations available to common stockholders, excluding AOCI and preferred stock ROE, adjusted income from operations ROE, book value per share, excluding AOCI, and adjusted book value per share to net income (loss), net income (loss) available to common stockholders, net income (loss) ROE and book value per share, including AOCI, calculated in accordance with GAAP.

This press release contains statements that are forward-looking, and actual results may differ materially. Please see the Forward-looking Statements – Cautionary Language at the end of this release for factors that may cause actual results to differ materially from the company’s current expectations.

For other financial information, please refer to the company’s second quarter 2023 statistical supplement available on its website http://www.lincolnfinancial.com/investor.  

Conference Call Information

Lincoln Financial Group will discuss the company’s second quarter results with investors in a conference call beginning at 10:00 a.m. Eastern Time on Thursday, August 3, 2023.

The conference call will be broadcast live through the company website at www.lincolnfinancial.com/webcast. Please log on to the webcast at least 15 minutes prior to the start of the conference call to download and install any necessary streaming media software. A replay of the call will be available by 1:00 p.m. Eastern Time on August 3, 2023 at www.lincolnfinancial.com/webcast.

About Lincoln Financial Group

Lincoln Financial Group provides advice and solutions that help people take charge of their financial lives with confidence and optimism. As of December 31, 2022, approximately 16 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, and guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $299.2 billion in end-of-period account balances, net of reinsurance as of June 30, 2023. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices including the Dow Jones Sustainability Index North America and ranks among Newsweek’s Most Responsible Companies. Dedicated to diversity, equity and inclusion, we are included on transparency benchmarking tools such as the Corporate Equality Index, the Disability Equality Index and the Bloomberg Gender-Equality Index. Committed to providing our employees with flexible work arrangements, we were named to FlexJobs’ list of the Top 100 Companies to Watch for Remote Jobs in 2022. With a long and rich legacy of acting ethically, telling the truth and speaking up for what is right, Lincoln was recognized as one of Ethisphere’s 2022 World’s Most Ethical Companies®. We create opportunities for early career talent through our intern development program, which ranks among WayUp and Yello’s annual list of Top 100 Internship Programs. Learn more at: www.LincolnFinancial.com.  Follow us on Facebook,  Twitter,  LinkedIn, and Instagram.  Sign up for email alerts at http://newsroom.lfg.com.

Explanatory Notes on Use of Non-GAAP Measures

Management believes that adjusted income from operations (or adjusted operating income), adjusted income from operations available to common stockholders, adjusted income from operations available to common stockholders, excluding AOCI and preferred stock ROE, adjusted income from operations ROE, adjusted operating revenues, and adjusted income from operations per diluted share available to common stockholders better explain the results of the company’s ongoing businesses in a manner that allows for a better understanding of the underlying trends in the company’s current business because the excluded items are unpredictable and not necessarily indicative of current operating fundamentals or future performance of the business segments, and, in most instances, decisions regarding these items do not necessarily relate to the operations of the individual segments. Management also believes that using book value, excluding accumulated other comprehensive income (“AOCI”), and adjusted book value per share enables investors to analyze the amount of our net worth that is primarily attributable to our business operations. Book value per share, excluding AOCI is useful to investors because it eliminates the effect of items that are unpredictable and can fluctuate significantly from period to period, primarily based on changes in interest rates. Adjusted book value per share is useful to investors because it eliminates the effect of items that are unpredictable and can fluctuate significantly from period to period, primarily based on changes in equity markets and interest rates.

For the historical periods, reconciliations of non-GAAP measures used in this press release to the most directly comparable GAAP measure may be included in this Appendix to the press release and/or are included in the Statistical Reports for the corresponding periods contained in the Earnings section of the Investor Relations page on our website: www.lfg.com/investor.  

Definitions of Non-GAAP Measures Used in this Press Release

Adjusted income (loss) from operations, adjusted income (loss) from operations available to common stockholders, adjusted operating revenues, adjusted income (loss) from operations available to common stockholders, excluding AOCI and preferred stock ROE and adjusted income (loss) from operations ROE (in each case including and excluding the effect of average goodwill), book value per share, excluding AOCI, and adjusted book value per share are financial measures we use to evaluate and assess our results. Adjusted income (loss) from operations, adjusted income (loss) from operations available to common stockholders, adjusted operating revenues, adjusted income (loss) from operations available to common stockholders, excluding AOCI and preferred stock ROE, adjusted income (loss) from operations ROE, book value per share, excluding AOCI, and adjusted book value per share, as used in the press release, are non-GAAP financial measures and do not replace GAAP net income (loss), net income (loss) available to common stockholders, revenues, net income (loss) ROE and book value per share, including AOCI, the most directly comparable GAAP measures.

Adjusted Income (Loss) from Operations

Adjusted income (loss) from operations is GAAP net income (loss) excluding the after-tax effects of the following items, as applicable:

· Changes in market risk benefits (“MRBs”), including gains and losses and benefit payments (“MRB-related impacts”);

· Investment and reinsurance-related realized gain (loss):

o Changes in the carrying value of mortgage loans on real estate attributable to current expected credit losses (“CECL”) (“changes in CECL reserve for mortgage loans on real estate”);

o Changes in the carrying value of reinsurance-related assets attributable to CECL (“changes in CECL reserve for reinsurance-related assets”);

o Changes in the carrying value of fixed maturity AFS securities attributable to the estimation of credit losses (“changes in the credit loss allowance for fixed maturity AFS securities”); and

o Changes in the fair value of investments, including trading securities, equity securities, certain derivatives, and mortgage loans on real estate electing the fair value option, and of embedded derivatives within certain reinsurance arrangements, as well as sales or disposals of investments (“changes in investments and reinsurance-related embedded derivatives”);

· Changes in the fair value of the derivative instruments we hold to hedge GLB and GDB riders, net of fee income allocated to support the cost of hedging them (“changes in fair value of GLB and GDB hedge instruments, net of hedge allowance”);

· Changes in the fair value of the embedded derivative liabilities of our indexed annuity and indexed universal life insurance contracts and the associated index options we hold to hedge them, including collateral expense associated with hedge programs; (“indexed product net derivative results”); 

· Changes in reserves resulting from benefit ratio unlocking on variable universal life insurance products with secondary guarantees (“benefit ratio unlocking”);

· Income (loss) from the initial adoption of new accounting standards, regulations and policy changes;

· Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;

· Transaction and integration costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business;

· Gains (losses) on modification or early extinguishment of debt;

· Losses from the impairment of intangible assets and gains (losses) on other non-financial assets; and

· Income (loss) from discontinued operations.

Adjusted Income (Loss) from Operations Available to Common Stockholders

Adjusted income (loss) from operations available to common stockholders is defined as after-tax adjusted income (loss) from operations less preferred stock dividends and the adjustment for deferred units of LNC stock in our deferred compensation plans.

Adjusted Operating Revenues

Adjusted operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable:

· Investment and reinsurance-related realized gain (loss);

· Changes in fair value of GLB and GDB hedge instruments, net of hedge allowance;

· Indexed product net derivative results;

· Revenue adjustments from the initial adoption of new accounting standards; and

· Amortization of deferred gains arising from reserve changes on business sold through reinsurance.

Adjusted Income (Loss) From Operations Available to Common Stockholders, Excluding AOCI and Preferred Stock ROE

Adjusted income (loss) from operations available to common stockholders, excluding AOCI and preferred stock ROE measures how efficiently we generate profits from the resources provided by our net assets.

· It is calculated by dividing annualized adjusted income (loss) from operations available to common stockholders by average stockholders’ equity, excluding AOCI and preferred stock. 

· Management believes this metric is useful to investors because it eliminates the effect of market movements on ROE that are unpredictable and can fluctuate significantly from period to period, primarily related to changes in interest rates. 

· Management evaluates ROE by both including and excluding the effect of average goodwill.

Adjusted Income (Loss) from Operations ROE

Adjusted income (loss) from operations ROE is calculated based upon a non-GAAP financial measure.

· It is calculated by dividing annualized adjusted income (loss) from operations available to common stockholders by adjusted average stockholders’ equity. 

· Management believes this metric is useful to investors because it eliminates the effect of market movements on ROE that are unpredictable and can fluctuate significantly from period to period, primarily related to changes in equity markets and interest rates. 

· Management evaluates ROE by both including and excluding the effect of average goodwill.

Book Value Per Share, Excluding AOCI

Book value per share, excluding AOCI, is calculated based upon a non-GAAP financial measure.

It is calculated by dividing (a) stockholders’ equity, excluding AOCI and preferred stock by (b) common shares outstanding.

We provide book value per share, excluding AOCI, to enable investors to analyze the amount of our net worth that is primarily attributable to our business operations.

Management believes book value per share, excluding AOCI, is useful to investors because it eliminates the effect of items that can fluctuate significantly from period to period, primarily based on changes in interest rates.

Book value per share is the most directly comparable GAAP measure.

Adjusted Book Value Per Share

Adjusted book value per share is calculated based upon a non-GAAP financial measure.

· It is calculated by dividing (a) stockholders’ equity, excluding AOCI, preferred stock and MRB-related impacts by (b) common shares outstanding.

· We provide adjusted book value per share to enable investors to analyze the amount of our net worth that is primarily attributable to our business operations.

· Management believes adjusted book value per share is useful to investors because it eliminates the effect of market movements that are unpredictable that can fluctuate significantly from period to period, primarily based on changes in equity markets and interest rates.

· Book value per share is the most directly comparable GAAP measure.

Definition of Notable Items

Notable items are items which, in management’s view, do not reflect the company’s normal, ongoing operations.

· We believe highlighting notable items included in adjusted income (loss) from operations enables investors to better understand the fundamental trends in its results of operations and financial condition.

Special Note

Sales

Sales as reported consist of the following:

· Universal life insurance (“UL”), indexed universal life insurance (“IUL”), variable universal life insurance (“VUL”) – first-year commissionable premiums plus 5% of excess premiums received;

· MoneyGuard®linked-benefit products – MoneyGuard® (UL), 15% of total expected premium deposits, and MoneyGuard Market AdvantageSM(VUL), 150% of commissionable premiums;

· Executive Benefits – insurance and corporate-owned UL and VUL, first-year commissionable premiums plus 5% of excess premium received, and single premium bank-owned UL and VUL, 15% of single premium deposits;

· Term – 100% of annualized first-year premiums;

· Annuities and Retirement Plan Services – deposits from new and existing customers; and

· Group Protection – annualized first-year premiums from new policies.

Lincoln National Corporation

Reconciliation of Net Income to Adjusted Income from Operations

	For the				For the
(in millions, except per share data)	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2023		2022		2023		2022
Net Income (Loss) Available to Common
Stockholders – Diluted	$	502	$	833	$	(408)	$	2,314
Less:
Preferred stock dividends declared		(11)		-		(36)		-
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)		2		(7)		(2)		(7)
Net Income (Loss)		511		840		(370)		2,321
Less:
MRB-related impacts, after-tax		1,585		(399)		1,079		665
Investment and reinsurance-related realized gain (loss), after-tax (2)		(662)		(20)		(816)		(20)
Changes in fair value of GLB and GDB hedge instruments, net of hedge allowance, after-tax		(708)		868		(1,084)		926
Indexed product net derivative results, after-tax		(53)		23		(188)		109
Benefit ratio unlocking, after-tax		2		(6)		4		(6)
Transaction and integration costs related to mergers,
acquisitions and divestitures, after-tax (3)		(7)		-		(7)		-
Total adjustments		157		466		(1,012)		1,674
Adjusted Income (Loss) from Operations	$	354	$	374	$	642	$	647
Earnings (Loss) Per Common Share – Diluted (4)
Net income (loss)	$	2.94	$	4.83	$	(2.41)	$	13.25
Adjusted income (loss) from operations		2.02		2.13		3.54		3.67
Stockholders’ Equity, Average
Stockholders' equity	$	6,276	$	11,793	$	6,096	$	14,439
Less:
Preferred stock		986		-		986		-
AOCI		(4,429)		518		(4,741)		3,584
Stockholders’ equity, excluding AOCI and preferred stock		9,719		11,275		9,851		10,855
MRB-related impacts		(366)		(2,284)		(636)		(2,450)
GLB and GDB hedge instruments gains (losses) (5)		(973)		N/A		(621)		N/A
Adjusted average stockholders' equity	$	11,058	$	13,559	$	11,108	$	13,305
Return on Equity
Net income (loss) ROE		32.6%		28.5%		-12.1%		32.1%
Adjusted income (loss) from operations available to common stockholders,
excluding AOCI and preferred stock ROE		14.1%		13.0%		12.3%		11.8%
Adjusted income (loss) from operations ROE		12.4%		10.8%		12.2%		9.6%
(1) We exclude deferred units of LNC stock that are antidilutive from our diluted earnings per share calculation.
(2) Includes a $493 million after-tax impairment of fixed maturity AFS securities in an unrealized loss position for the three and six months
ended June 30, 2023, resulting from the Company's intent to sell these securities as part of the previously announced Fortitude Re
reinsurance transaction.  Within the investment portfolio anticipated to be sold in the transaction, there are additional fixed maturity AFS
securities in an unrealized gain position of approximately $374 million after-tax as of June 30, 2023.  Pursuant to the applicable accounting
guidance, the Company impaired the securities in a loss position down to fair market value upon entry into the agreement in the second
quarter and will recognize a gain for any securities in an unrealized gain position at the time when the transaction closes.
(3) Includes costs pertaining to the Fortitude Re reinsurance transaction.
(4) In periods where a net loss or adjusted loss from operations is presented, basic shares are used in the diluted EPS and adjusted diluted EPS
calculations, as the use of diluted shares would result in a lower loss per share.
(5) For periods beginning on or after January 1, 2023, gains (losses) on our GLB and GDB hedge instruments are excluded from adjusted
stockholders' equity to align to the updated hedge program.

Lincoln National Corporation

Reconciliation of Book Value per Share

	As of June 30,
	2023		2022
Book Value Per Common Share
Book value per share	$	28.49	$	54.81
Less:
AOCI		(30.09)		(13.40)
Book value per share, excluding AOCI		58.58		68.21
Less:
MRB-related gains (losses)		2.51		(14.57)
GLB and GDB hedge instruments gains (losses)(1)		(8.30)		N/A
Adjusted book value per share	$	64.37	$	82.78
(1) For periods beginning on or after January 1, 2023, gains (losses) on our GLB and GDB hedge instruments are excluded from adjusted
stockholders' equity to align to the updated hedge program.

Lincoln National Corporation

Digest of Earnings

	For the
(in millions, except per share data)	Three Months Ended
	June 30,
	2023		2022
Revenues	$	2,929	$	5,577
Net Income (Loss)	$	511	$	840
Preferred stock dividends declared		(11)		-
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)		2		(7)
Net Income (Loss) Available to Common
Stockholders – Diluted	$	502	$	833
Earnings (Loss) Per Common Share – Basic	$	2.95	$	4.91
Earnings (Loss) Per Common Share – Diluted (2)		2.94		4.83
Average Shares – Basic	169,581,636		171,130,192
Average Shares – Diluted	170,497,507		172,706,993
	For the
	Six Months Ended
	June 30,
	2023		2022
Revenues	$	6,743	$	10,297
Net Income (Loss)	$	(370)	$	2,321
Preferred stock dividends declared		(36)		-
Adjustment for deferred units of LNC stock in our
deferred compensation plans (1)		(2)		(7)
Net Income (Loss) Available to Common
Stockholders – Diluted	$	(408)	$	2,314
Earnings (Loss) Per Common Share – Basic	$	(2.40)	$	13.44
Earnings (Loss) Per Common Share – Diluted (2)		(2.41)		13.25
Average Shares – Basic	169,470,359		172,633,482
Average Shares – Diluted	170,491,952		174,562,419
(1) We exclude deferred units of LNC stock that are antidilutive from our diluted earnings per share calculation.
(2)  In periods where a net loss or adjusted loss from operations is presented, basic shares are used in the diluted EPS and adjusted diluted
EPS calculations, as the use of diluted shares would result in a lower loss per share.

FORWARD-LOOKING STATEMENTS – CAUTIONARY LANGUAGE

Certain statements made in this press release and in other written or oral statements made by Lincoln or on Lincoln’s behalf are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements. Forward-looking statements may contain words like: “anticipate,” “believe,” “estimate,” “expect,” “project,” “shall,” “will” and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, trends in Lincoln’s businesses, prospective services or products, future performance or financial results and the outcome of contingencies, such as legal proceedings. Lincoln claims the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.

Forward-looking statements are subject to risks and uncertainties. Actual results could differ materially from those expressed in or implied by such forward-looking statements due to a variety of factors, including:

· Weak general economic and business conditions that may affect demand for our products, account balances, investment results, guaranteed benefit liabilities, premium levels and claims experience;

· Adverse global capital and credit market conditions that may affect our ability to raise capital, if necessary, and may cause us to realize impairments on investments and certain intangible assets, including goodwill and the valuation allowance against deferred tax assets, which may reduce future earnings and/or affect our financial condition and ability to raise additional capital or refinance existing debt as it matures;

· The inability of our subsidiaries to pay dividends to the holding company in sufficient amounts, which could harm the holding company’s ability to meet its obligations;

· Legislative, regulatory or tax changes, both domestic and foreign, that affect: the cost of, or demand for, our subsidiaries’ products; the required amount of reserves and/or surplus; our ability to conduct business and our captive reinsurance arrangements as well as restrictions on the payment of revenue sharing and 12b-1 distribution fees;

· The impact of U.S. federal tax reform legislation on our business, earnings and capital;

· The impact of regulations adopted by the Securities and Exchange Commission (“SEC”), the Department of Labor or other federal or state regulators or self-regulatory organizations relating to the standard of care owed by investment advisers and/or broker-dealers that could affect our distribution model;

· The impact of new and emerging privacy regulations that may lead to increased compliance costs and reputation risk;

· Increasing scrutiny and evolving expectations and regulations regarding ESG matters that may adversely affect our reputation and our investment portfolio;

· Actions taken by reinsurers to raise rates on in-force business;

· Declines in or sustained low interest rates causing a reduction in investment income, the interest margins of our businesses and demand for our products;

· Rapidly increasing interest rates causing policyholders to surrender life insurance and annuity policies, thereby causing realized investment losses;

· The impact of the implementation of the provisions of the European Market Infrastructure Regulation relating to the regulation of derivatives transactions;

· The initiation of legal or regulatory proceedings against us, and the outcome of any legal or regulatory proceedings, such as: adverse actions related to present or past business practices common in businesses in which we compete; adverse decisions in significant actions including, but not limited to, actions brought by federal and state authorities and class action cases; new decisions that result in changes in law; and unexpected trial court rulings;

· A decline or continued volatility in the equity markets causing a reduction in the sales of our subsidiaries’ products; a reduction of asset-based fees that our subsidiaries charge on various investment and insurance products; and an increase in liabilities related to guaranteed benefit riders, which are accounted for as market risk benefits, of our subsidiaries’ variable annuity products;

· Ineffectiveness of our risk management policies and procedures, including our various hedging strategies;

· A deviation in actual experience regarding future policyholder behavior, mortality, morbidity, interest rates or equity market returns from the assumptions used in pricing our subsidiaries’ products and in establishing related insurance reserves, which may reduce future earnings;

· Changes in accounting principles that may affect our consolidated financial statements;

· Lowering of one or more of our debt ratings issued by nationally recognized statistical rating organizations and the adverse effect such action may have on our ability to raise capital and on our liquidity and financial condition;

· Lowering of one or more of the insurer financial strength ratings of our insurance subsidiaries and the adverse effect such action may have on the premium writings, policy retention, profitability of our insurance subsidiaries and liquidity;

· Significant credit, accounting, fraud, corporate governance or other issues that may adversely affect the value of certain financial assets, as well as counterparties to which we are exposed to credit risk, requiring that we realize losses on financial assets;

· Interruption in telecommunication, information technology or other operational systems or failure to safeguard the confidentiality or privacy of sensitive data on such systems, including from cyberattacks or other breaches of our data security systems;

· The effect of acquisitions and divestitures, restructurings, product withdrawals and other unusual items;

· The inability to realize or sustain the benefits we expect from, greater than expected investments in, and the potential impact of efforts related to, our strategic initiatives, including the Spark Initiative;

· The adequacy and collectability of reinsurance that we have obtained;

· Pandemics, acts of terrorism, war or other man-made and natural catastrophes that may adversely impact liabilities for policyholder claims, affect our businesses and increase the cost and availability of reinsurance;

· Competitive conditions, including pricing pressures, new product offerings and the emergence of new competitors, that may affect the level of premiums and fees that our subsidiaries can charge for their products;

· The unknown effect on our subsidiaries’ businesses resulting from evolving market preferences and the changing demographics of our client base; and

· The unanticipated loss of key management, financial planners or wholesalers.

The risks and uncertainties included here are not exhaustive. Our most recent Form 10-K, as well as other reports that we file with the SEC, include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.

Further, it is not possible to assess the effect of all risk factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, Lincoln disclaims any obligation to update any forward-looking statements to reflect events or circumstances that occur after the date of this press release.

The reporting of Risk-Based Capital (“RBC”) measures is not intended for the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities.

EX-99.2

Lincoln Financial Group
Table of Contents
Notes	1
Credit Ratings	2
Consolidated
Consolidated Statements of Income (Loss)	3
Consolidated Balance Sheets	4
Earnings, Shares and Return on Equity	5
Key Stakeholder Metrics	6
Select Earnings Drivers By Segment	7
Sales By Segment	8
Operating Revenues and General and Administrative Expenses By Segment	9
Operating Commissions and Other Expenses	10
Interest Rate Yields and Spreads By Segment	11
Select Earnings and Operational Data from Business Segments
Income (Loss) from Operations Summary	12
Life Insurance	13
Annuities	14
Group Protection	15
Retirement Plan Services	16
Other Operations	17
DAC & Account Balance Roll Forwards
Consolidated DAC, VOBA, DSI and DFEL Roll Forwards	18
Account Balance Roll Forwards:
Life Insurance	19
Annuities	20
Retirement Plan Services	21
Investment Information
Fixed-Income Asset Class	22
Fixed-Income Credit Quality	23
GAAP to Non-GAAP Reconciliations
Select GAAP to Non-GAAP Reconciliations	24-26

Lincoln Financial Group

Notes

Non-GAAP Performance Measures

Non-GAAP measures do not replace the most directly comparable GAAP measures, and we have included detailed reconciliations herein beginning on page 24.

Adjusted Income (Loss) From Operations

Adjusted income (loss) from operations is GAAP net income excluding the after-tax effects of the following items, as applicable:

• Changes in market risk benefits (“MRBs”), including gains and losses and benefit payments (“MRB-related impacts”);

• Investment and reinsurance-related realized gain (loss):

▪ Changes in the carrying value of mortgage loans on real estate attributable to current expected credit losses (“CECL”) (“changes in CECL reserve for mortgage loans on real estate”);

▪ Changes in the carrying value of reinsurance-related assets attributable to CECL (“changes in CECL reserve for reinsurance-related assets”);

▪ Changes in the carrying value of fixed maturity AFS securities attributable to the estimation of credit losses (“changes in the credit loss allowance for fixed maturity AFS securities”); and

▪ Changes in the fair value of investments, including trading securities, equity securities, certain derivatives, and mortgage loans on real estate electing the fair value option, and of

embedded derivatives within certain reinsurance arrangements, as well as sales or disposals of investments (“changes in investments and reinsurance-related embedded derivatives”);

• Changes in the fair value of the derivative instruments we hold to hedge GLB and GDB riders, net of fee income allocated to support the cost of hedging them (“changes in fair value of GLB and GDB

hedge instruments, net of hedge allowance”);

• Changes in the fair value of the embedded derivative liabilities of our indexed annuity and indexed universal life insurance contracts and the associated index options we hold to hedge them, including

collateral expense associated with hedge programs (“indexed product net derivative results”);

• Changes in reserves resulting from benefit ratio unlocking on variable universal life insurance products with secondary guarantees (“benefit ratio unlocking”);

• Income (loss) from the initial adoption of new accounting standards, regulations and policy changes;

• Income (loss) from reserve changes, net of related amortization, on business sold through reinsurance;

• Transaction and integration costs related to mergers and acquisitions including the acquisition or divestiture, through reinsurance or other means, of businesses or blocks of business;

• Gains (losses) on modification or early extinguishment of debt;

• Losses from the impairment of intangible assets and gains (losses) on other non-financial assets; and

• Income (loss) from discontinued operations.

Adjusted income (loss) from operations available to common stockholders is defined as after-tax adjusted income (loss) from operations less preferred stock dividends and the adjustment for deferred

units of LNC stock in our deferred compensation plans.

Adjusted Operating Revenues

Adjusted operating revenues represent GAAP revenues excluding the pre-tax effects of the following items, as applicable:

• Investment and reinsurance-related realized gain (loss);

• Changes in fair value of GLB and GDB hedge instruments, net of hedge allowance;

• Indexed product net derivative results;

• Revenue adjustments from the initial adoption of new accounting standards; and

• Amortization of deferred gains arising from reserve changes on business sold through reinsurance.

Management believes that the non-GAAP performance measures discussed above explain the results of our ongoing businesses in a manner that allows for a better understanding of the underlying trends

in our current business as the excluded items are unpredictable and not necessarily indicative of current operating fundamentals or future performance of the business segments, and, in many instances,

decisions regarding these items do not necessarily relate to the operations of the individual segments.  In addition, we believe that our definitions of adjusted operating revenues and adjusted income (loss)

from operations provide investors with more valuable measures of our performance as they better reveal trends in our business.

Page 1a

Lincoln Financial Group

Notes

Non-GAAP Performance Measures, Continued

Stockholders’ Equity, Excluding AOCI and Preferred Stock

Stockholders’ equity, excluding AOCI is stockholders’ equity, excluding AOCI and preferred stock.  Management believes this metric is useful to investors because it eliminates market movements that are

unpredictable and can fluctuate significantly from period to period, primarily related to changes in interest rates.  Stockholders’ equity is the most directly comparable GAAP measure. 

Adjusted Stockholders’ Equity

For presented periods prior to January 1, 2023, adjusted stockholders’ equity is stockholders’ equity, excluding AOCI, preferred stock and MRB-related impacts. For periods beginning on or after January 1, 2023,

adjusted stockholders’ equity is stockholders’ equity, excluding AOCI, preferred stock, MRB-related impacts and GLB and GDB hedged instruments gains (losses), to align to updates made to our variable

annuity hedge program effective January 1, 2023. Management believes this metric is useful to investors because it eliminates the effect of market movements that are unpredictable and can fluctuate significantly

from period to period, primarily related to changes in equity markets and interest rates. Stockholders’ equity is the most directly comparable GAAP measure.

Book Value per Share, Excluding AOCI

Book value per share, excluding AOCI, is calculated by dividing stockholders’ equity, excluding AOCI and preferred stock, by common shares outstanding. We provide book value per share, excluding AOCI, to

enable investors to analyze the amount of our net worth that is attributable primarily to our business operations. Management believes book value per share, excluding AOCI, is useful to investors because it

eliminates the effect of items that are unpredictable and can fluctuate significantly from period to period, primarily based on changes in interest rates. Book value per share is the most directly comparable GAAP

measure.

Adjusted Book Value per Share

Adjusted book value per share is calculated by dividing stockholders’ equity, excluding AOCI, preferred stock and MRB-related impacts, by common shares outstanding. We provide adjusted book value per share

to enable investors to analyze the amount of our net worth that is attributable primarily to our business operations. Management believes adjusted book value per share is useful to investors because it eliminates

the effect of items that are unpredictable and can fluctuate significantly from period to period, primarily based on changes in equity markets and interest rates.  Book value per share is the most directly

comparable GAAP measure.

Adjusted Income (Loss) From Operations Available to Common Stockholders, Excluding AOCI and Preferred Stock ROE

Adjusted income (loss) from operations available to common stockholders, excluding AOCI and preferred stock ROE is calculated by dividing annualized adjusted income (loss) from operations available

to common stockholders by average stockholders’ equity, excluding AOCI  and preferred stock.  Management believes this metric is useful to investors because it eliminates the effect of market movements

on ROE that are unpredictable and can fluctuate significantly from period to period, primarily related to changes in interest rates.  Net income (loss) ROE is the most directly comparable GAAP measure.

Adjusted Income (Loss) From Operations ROE

Adjusted income (loss) from operations ROE is calculated by dividing annualized adjusted income (loss) from operations available to common stockholders by adjusted average stockholders’ equity. 

Management believes this metric is useful to investors because it eliminates the effect of market movements on ROE that are unpredictable and can fluctuate significantly from period to period, primarily

related to changes in equity markets and interest rates.  Net income (loss) ROE is the most directly comparable GAAP measure.

Management believes that the non-GAAP measures discussed above allow for a better understanding of the underlying trends in our current business as the excluded items are unpredictable and not necessarily

indicative of current operating fundamentals or future performance of the business.

Computations

• The quarterly financial information for the current year may not sum to the corresponding year-to-date amount as both are rounded to millions.

• The financial ratios reported herein are calculated using whole dollars instead of dollars rounded to millions.

• We exclude deferred units of LNC stock that are antidilutive from our diluted earnings per share calculation.  In addition, for any period where a net loss or adjusted loss from operations is experienced, shares

  used in the diluted EPS calculation represent basic shares, as the use of diluted shares would result in a lower loss per share.

• Pre-tax net margin is calculated by dividing adjusted income (loss) from operations before taxes by net revenue, which is defined as total adjusted operating revenues less interest credited.

Page 1b

Lincoln Financial Group

Notes

Definitions

Holding company available liquidity consists of cash and invested cash, excluding cash held as collateral, and certain short-term investments that can be readily converted into cash, net of commercial paper

outstanding.

Return on equity (“ROE”) measures how efficiently we generate profits from the resources provided by our net assets. See adjusted income (loss) from operations ROE and adjusted income (loss) from

operations available to common stockholders, excluding AOCI and preferred stock ROE metrics on page 1b for further information on how these metrics are calculated. Management evaluates consolidated

ROE by both including and excluding the effect of average goodwill.

Sales as reported consist of the following:

• Universal life insurance (“UL”), indexed universal life insurance (“IUL”), variable universal life insurance (“VUL”) – first-year commissionable premiums plus 5% of excess premiums received;

•  MoneyGuard®linked-benefit products – MoneyGuard® (UL), 15% of total expected premium deposits, and MoneyGuard Market AdvantageSM (VUL), 150% of commissionable premiums;

• Executive Benefits – insurance and corporate-owned UL and VUL, first-year commissionable premiums plus 5% of excess premium received, and single premium bank-owned UL and VUL, 15% of

     single premium deposits;

• Term – 100% of annualized first-year premiums;

• Annuities and Retirement Plan Services – deposits from new and existing customers; and

• Group Protection – annualized first-year premiums from new policies.

Statistical Supplement is Dated

This document is dated August 2, 2023, and has not been updated since that date.  Lincoln Financial Group does not intend to update this document.

Page 1c

Lincoln Financial Group
Credit Ratings
	Ratings as of August 2, 2023
					Standard
		AM Best	Fitch	Moody's	& Poor's
Senior Debt Ratings		bbb+	BBB+	Baa1	BBB+
Financial Strength Ratings
The Lincoln National Life Insurance Company		A	A+	A1	A+
First Penn-Pacific Life Insurance Company		A	A+	A1	A-
Lincoln Life & Annuity Company of New York		A	A+	A1	A+
Investor Inquiries May Be Directed To:
Albert Copersino, Vice President, Investor Relations
Email:  InvestorRelations@lfg.com
Phone:  800-237-2920
Page 2

Lincoln Financial Group
Consolidated Statements of Income (Loss)
Unaudited (millions of dollars, except per share data)
	For the Three Months Ended											For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
Revenues
Insurance premiums	$	1,498	$	1,548	$	1,564	$	1,579	$	1,612	7.6%	$	2,975	$	3,191	7.3%
Fee income		1,409		1,381		1,354		1,379		1,365	-3.1%		2,867		2,744	-4.3%
Net investment income		1,398		1,295		1,412		1,466		1,508	7.9%		2,809		2,974	5.9%
Realized gain (loss)		1,101		249		(692)		(828)		(1,784)	NM		1,282		(2,612)	NM
Amortization of deferred gain on business
sold through reinsurance		11		10		10		9		9	-18.2%		22		19	-13.6%
Other revenues		160		189		193		209		219	36.9%		342		427	24.9%
Total revenues		5,577		4,672		3,841		3,814		2,929	-47.5%		10,297		6,743	-34.5%
Expenses
Benefits		1,954		2,149		2,220		2,291		2,192	12.2%		4,110		4,483	9.1%
Interest credited		710		726		744		785		808	13.8%		1,407		1,593	13.2%
Market risk benefit (gain) loss		477		(798)		(1,567)		619		(2,023)	NM		(881)		(1,404)	-59.4%
Policyholder liability remeasurement (gain) loss		85		2,692		(52)		(118)		(110)	NM		126		(228)	NM
Commissions and other expenses		1,207		1,280		1,385		1,300		1,335	10.6%		2,460		2,637	7.2%
Interest and debt expense		68		71		77		83		84	23.5%		134		166	23.9%
Spark program expense		44		44		49		24		41	-6.8%		75		64	-14.7%
Impairment of intangibles		-		634		-		-		-	NM		-		-	NM
Total expenses		4,545		6,798		2,856		4,984		2,327	-48.8%		7,431		7,311	-1.6%
Income (loss) before taxes		1,032		(2,126)		985		(1,170)		602	-41.7%		2,866		(568)	NM
Federal income tax expense (benefit)		192		(351)		173		(289)		91	-52.6%		545		(198)	NM
Net income (loss)		840		(1,775)		812		(881)		511	-39.2%		2,321		(370)	NM
Preferred stock dividends declared		-		-		-		(25)		(11)	NM		-		(36)	NM
Adjustment for deferred units of LNC stock
in our deferred compensation plans		(7)		(1)		(5)		(3)		2	128.6%		(7)		(2)	71.4%
Net income (loss) available to common
stockholders – diluted	$	833	$	(1,776)	$	807	$	(909)	$	502	-39.8%	$	2,314	$	(408)	NM
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	4.83	$	(10.47)	$	4.73	$	(5.37)	$	2.94	-39.1%	$	13.25	$	(2.41)	NM
Page 3

Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
	As of
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change
ASSETS
Investments:
Fixed maturity available-for-sale (“AFS”) securities, net of allowance for
credit losses:
Corporate bonds	$	83,158	$	77,446	$	79,023	$	80,448	$	79,307	-4.6%
U.S. government bonds		415		384		379		383		371	-10.6%
State and municipal bonds		5,523		5,089		5,070		5,257		5,074	-8.1%
Foreign government bonds		348		338		318		309		281	-19.3%
Residential mortgage-backed securities		2,181		2,048		2,009		2,050		2,015	-7.6%
Commercial mortgage-backed securities		1,557		1,549		1,674		1,671		1,684	8.2%
Asset-backed securities		9,711		10,347		10,904		11,458		11,793	21.4%
Hybrid and redeemable preferred securities		423		371		359		360		365	-13.7%
Total fixed maturity AFS securities, net of allowance for credit losses		103,316		97,572		99,736		101,936		100,890	-2.3%
Trading securities		3,803		3,580		3,498		3,266		2,943	-22.6%
Equity securities		412		427		427		414		403	-2.2%
Mortgage loans on real estate, net of allowance for credit losses		17,922		18,066		18,301		18,327		18,460	3.0%
Policy loans		2,368		2,347		2,359		2,383		2,423	2.3%
Derivative investments		3,167		3,456		3,594		4,005		5,155	62.8%
Other investments		4,078		3,812		3,739		3,892		4,195	2.9%
Total investments		135,066		129,260		131,654		134,223		134,469	-0.4%
Cash and invested cash		1,567		1,472		3,343		3,766		3,768	140.5%
Deferred acquisition costs, value of business acquired and deferred sales inducements		12,050		12,140		12,235		12,277		12,316	2.2%
Reinsurance recoverables, net of allowance for credit losses		19,874		19,460		19,443		19,309		19,030	-4.2%
Market risk benefit assets		2,205		2,428		2,807		3,445		3,906	77.1%
Accrued investment income		1,226		1,283		1,253		1,277		1,277	4.2%
Goodwill		1,778		1,144		1,144		1,144		1,144	-35.7%
Other assets		16,708		18,435		18,802		19,280		19,456	16.4%
Separate account assets		145,791		137,295		143,536		148,421		153,246	5.1%
Total assets	$	336,265	$	322,917	$	334,217	$	343,142	$	348,612	3.7%
Page 4a

Lincoln Financial Group
Consolidated Balance Sheets
Unaudited (millions of dollars)
	As of
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Policyholder account balances	$	110,202	$	111,732	$	114,435	$	116,167	$	117,598	6.7%
Future contract benefits		36,453		38,087		38,826		39,757		39,711	8.9%
Market risk benefit liabilities		3,195		2,756		2,078		1,976		1,548	-51.5%
Deferred front-end loads		4,623		4,834		5,052		5,250		5,450	17.9%
Payables for collateral on investments		7,524		6,865		6,712		6,803		7,062	-6.1%
Short-term debt		-		500		500		500		500	NM
Long-term debt by rating agency leverage definitions:
Operating (see note (2) on page 6 for details)		867		867		867		867		867	0.0%
Financial		5,631		5,092		5,088		5,107		5,087	-9.7%
Other liabilities		12,648		12,106		12,021		11,562		11,724	-7.3%
Separate account liabilities		145,791		137,295		143,536		148,421		153,246	5.1%
Total liabilities		326,934		320,134		329,115		336,410		342,793	4.9%
Stockholders’ Equity
Preferred stock		-		-		986		986		986	NM
Common stock		4,546		4,534		4,544		4,560		4,575	0.6%
Retained earnings		7,065		5,189		5,924		4,940		5,362	-24.1%
Accumulated other comprehensive income (loss):
Unrealized investment gain (loss)		(4,623)		(9,677)		(8,528)		(6,754)		(7,267)	-57.2%
Market risk benefit non-performance risk gain (loss)		2,325		2,175		1,741		2,766		1,842	-20.8%
Policyholder liability discount rate remeasurement gain (loss)		257		806		747		545		657	155.6%
Foreign currency translation adjustment		(33)		(47)		(34)		(31)		(26)	21.2%
Funded status of employee benefit plans		(206)		(197)		(278)		(280)		(310)	-50.5%
Total accumulated other comprehensive income (loss)		(2,280)		(6,940)		(6,352)		(3,754)		(5,104)	NM
Total stockholders’ equity		9,331		2,783		5,102		6,732		5,819	-37.6%
Total liabilities and stockholders’ equity	$	336,265	$	322,917	$	334,217	$	343,142	$	348,612	3.7%
Page 4b

Lincoln Financial Group
Earnings, Shares and Return on Equity
Unaudited (millions of dollars, except per share data)
	As of or For the Three Months Ended											As of or For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
Income (Loss)
Net income (loss)	$	840	$	(1,775)	$	812	$	(881)	$	511	-39.2%	$	2,321	$	(370)	NM
Pre-tax adjusted income (loss) from operations		441		(2,513)		127		310		403	-8.6%		748		713	-4.7%
After-tax adjusted income (loss) from operations (1)		374		(1,949)		134		288		354	-5.3%		647		642	-0.8%
Adjusted operating tax rate		15.3%		22.5%		-5.5%		7.2%		12.2%			13.5%		10.0%
Adjusted income (loss) from operations available to
common stockholders		367		(1,950)		129		260		343	-6.6%		640		604	-5.7%
ROE
Net income (loss) ROE		28.5%		NM		82.3%		-59.6%		32.6%			32.1%		-12.1%
Adjusted income (loss) from operations available to
common stockholders, excluding AOCI and preferred
stock ROE		13.0%		-73.1%		5.1%		10.4%		14.1%			11.8%		12.3%
Adjusted income (loss) from operations ROE		10.8%		-60.7%		4.6%		9.3%		12.4%			9.6%		12.2%
Per Common Share
Net income (loss) (diluted)	$	4.83	$	(10.47)	$	4.73	$	(5.37)	$	2.94	-39.1%	$	13.25	$	(2.41)	NM
Adjusted income (loss) from operations (diluted) (2)		2.13		(11.49)		0.76		1.52		2.02	-5.2%		3.67		3.54	-3.5%
Dividends declared during the period		0.45		0.45		0.45		0.45		0.45	0.0%		0.90		0.90	0.0%
Book Value Per Common Share
Book value per share	$	54.81	$	16.45	$	24.32	$	33.89	$	28.49	-48.0%	$	54.81	$	28.49	-48.0%
Book value per share, excluding AOCI (3)		68.21		57.46		61.86		56.04		58.58	-14.1%		68.21		58.58	-14.1%
Adjusted book value per share (3)		82.78		68.53		65.72		66.05		64.37	-22.2%		82.78		64.37	-22.2%
Common Shares
Repurchased during the period		1.8		1.0		-		-		-	-100.0%		7.6		-	-100.0%
End-of-period – basic		170.2		169.2		169.2		169.5		169.6	-0.4%		170.2		169.6	-0.4%
Average for the period – basic		171.1		169.7		169.2		169.4		169.6	-0.9%		172.6		169.5	-1.8%
End-of-period – diluted		171.6		170.7		170.5		170.5		170.0	-0.9%		171.6		170.0	-0.9%
Average for the period – diluted		172.7		171.1		170.6		170.5		169.9	-1.6%		174.6		170.5	-2.3%
(1) See reconciliation to net income (loss) on page 24.
(2) See reconciliation to earnings (loss) per common share - diluted on page 25.
(3) See reconciliation to stockholders’ equity and book value per common share on page 26.
Page 5

Lincoln Financial Group
Key Stakeholder Metrics
Unaudited (millions of dollars, except per share data)
	As of or For the Three Months Ended											For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
Cash Returned to Common Stockholders
Shares repurchased	$	100	$	50	$	-	$	-	$	-	-100.0%	$	500	$	-	-100.0%
Common dividends		77		77		76		76		76	-1.3%		157		152	-3.2%
Total cash returned to common stockholders	$	177	$	127	$	76	$	76	$	76	-57.1%	$	657	$	152	-76.9%
Cash Returned to Preferred Stockholders - Dividends	$	-	$	-	$	-	$	25	$	11	NM	$	-	$	36	NM
Leverage Ratio
Short-term debt	$	-	$	500	$	500	$	500	$	500	NM
Long-term debt		6,498		5,959		5,955		5,974		5,954	-8.4%
Total debt (1)		6,498		6,459		6,455		6,474		6,454	-0.7%
Preferred stock		-		-		986		986		986	NM
Total debt and preferred stock		6,498		6,459		7,441		7,460		7,440	14.5%
Less:
Operating debt (2)		867		867		867		867		867	0.0%
Pre-funding of upcoming debt maturities		300		300		500		500		500	66.7%
25% of capital securities and subordinated notes		302		302		302		302		302	0.0%
50% of preferred stock		-		-		493		493		493	NM
Carrying value of fair value hedges and other items		209		169		164		182		161	-23.0%
Total numerator	$	4,820	$	4,821	$	5,115	$	5,116	$	5,117	6.2%
Adjusted stockholders’ equity (3)	$	14,094	$	11,595	$	11,120	$	11,197	$	10,918	-22.5%
Add:
25% of capital securities and subordinated notes		302		302		302		302		302	0.0%
50% of preferred stock		-		-		493		493		493	NM
Total numerator		4,820		4,821		5,115		5,116		5,117	6.2%
Total denominator	$	19,216	$	16,718	$	17,030	$	17,108	$	16,830	-12.4%
Leverage ratio (4)		25.1%		28.8%		30.0%		29.9%		30.4%
Holding Company Available Liquidity	$	756	$	756	$	960	$	954	$	957	26.6%
(1) Excludes obligations under finance leases and certain financing arrangements of $652 million that are reported in other liabilities on our Consolidated Balance Sheets.
(2) We have categorized as operating debt the senior notes issued in October 2007 and June 2010 because the proceeds were used as a long-term structured solution to reduce
the strain on increasing statutory reserves associated with secondary guarantee UL and term policies.
(3) See reconciliation to stockholders’ equity on page 26.
(4) The leverage ratio as of June 30, 2023, was impacted by the denominator including a $493 million after-tax impairment of fixed maturity AFS securities in an unrealized loss position
resulting from the Company’s intent to sell these securities as part of the previously announced Fortitude Re reinsurancetransaction. Within the investment portfolio anticipated
to be sold in the transaction, there are additional fixed maturity AFS securities in an unrealized gain position of approximately $374 million after-tax as of June 30, 2023.  Pursuant to
the applicable accounting guidance, the Company impaired the securities in a loss position down to fair market value upon entry into the agreement in the second quarter and will
recognize a gain for any securities in an unrealized gain position at the time when the transaction closes.
Page 6

Lincoln Financial Group
Select Earnings Drivers By Segment
Unaudited (millions of dollars)
	For the Three Months Ended											For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
Life Insurance
Operating revenues	$	1,705	$	1,623	$	1,688	$	1,757	$	1,760	3.2%	$	3,435	$	3,517	2.4%
Deposits		1,459		1,406		1,605		1,320		1,333	-8.6%		2,810		2,655	-5.5%
Net flows		1,063		1,002		1,149		852		932	-12.3%		1,973		1,784	-9.6%
Average account balances, net of reinsurance		49,316		47,663		47,963		49,100		50,049	1.5%		50,260		49,575	-1.4%
Average in-force face amount		1,010,659		1,037,952		1,061,415		1,075,614		1,081,795	7.0%		997,973		1,078,704	8.1%
Annuities
Operating revenues	$	1,097	$	1,113	$	1,125	$	1,141	$	1,190	8.5%	$	2,244	$	2,331	3.9%
Deposits		2,701		3,232		3,198		3,164		2,560	-5.2%		5,403		5,724	5.9%
Net flows		(285)		322		152		(331)		(1,108)	NM		(811)		(1,439)	-77.4%
Average account balances, net of reinsurance		149,824		144,858		142,099		146,331		148,260	-1.0%		155,516		147,314	-5.3%
Group Protection
Operating revenues	$	1,323	$	1,333	$	1,346	$	1,388	$	1,400	5.8%	$	2,626	$	2,788	6.2%
Insurance premiums		1,187		1,200		1,213		1,251		1,263	6.4%		2,356		2,514	6.7%
Retirement Plan Services
Operating revenues	$	315	$	316	$	325	$	328	$	334	6.0%	$	633	$	661	4.4%
Deposits		3,200		3,091		2,973		3,209		2,897	-9.5%		6,837		6,106	-10.7%
Net flows		913		805		51		535		201	-78.0%		1,840		736	-60.0%
Average account balances		90,628		88,196		87,987		91,457		94,131	3.9%		93,025		92,771	-0.3%
Consolidated
Adjusted operating revenues (1)	$	4,474	$	4,421	$	4,531	$	4,657	$	4,730	5.7%	$	9,011	$	9,387	4.2%
Deposits		7,360		7,729		7,776		7,693		6,790	-7.7%		15,050		14,485	-3.8%
Net flows		1,691		2,129		1,352		1,056		25	-98.5%		3,002		1,081	-64.0%
Average account balances, net of reinsurance		289,768		280,717		278,049		286,888		292,440	0.9%		298,801		289,660	-3.1%
(1) See reconciliation to total revenues on page 25.
Page 7

Lincoln Financial Group
Sales By Segment
Unaudited (millions of dollars)
	For the Three Months Ended											For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
Sales
Life Insurance:
IUL/UL	$	27	$	40	$	41	$	34	$	28	3.7%	$	53	$	62	17.0%
MoneyGuard®		24		22		26		21		23	-4.2%		47		44	-6.4%
VUL		44		36		49		30		34	-22.7%		78		64	-17.9%
Term		48		47		39		30		26	-45.8%		90		56	-37.8%
Executive Benefits		50		26		31		15		12	-76.0%		79		27	-65.8%
Total Life Insurance	$	193	$	171	$	186	$	130	$	123	-36.3%	$	347	$	253	-27.1%
Annuities:
Indexed variable	$	1,220	$	1,246	$	1,211	$	1,147	$	1,123	-8.0%	$	2,269	$	2,271	0.1%
Other variable without GLBs		422		374		303		255		341	-19.2%		1,025		594	-42.0%
Other variable with GLBs		536		475		432		445		494	-7.8%		1,214		940	-22.6%
Total variable		2,178		2,095		1,946		1,847		1,958	-10.1%		4,508		3,805	-15.6%
Fixed		524		1,167		1,264		1,317		624	19.1%		896		1,942	116.7%
Total Annuities	$	2,702	$	3,262	$	3,210	$	3,164	$	2,582	-4.4%	$	5,404	$	5,747	6.3%
Percent with GLBs		19.8%		14.6%		13.5%		14.1%		19.1%			22.5%		16.4%
Percent with GLBs, including the impact of VA
reinsurance		14.0%		11.4%		11.0%		12.0%		16.4%			16.0%		14.0%
Group Protection:
Life	$	62	$	41	$	141	$	82	$	54	-12.9%	$	116	$	137	18.1%
Disability		59		37		195		40		36	-39.0%		105		75	-28.6%
Dental		6		10		20		6		6	0.0%		11		12	9.1%
Total Group Protection	$	127	$	88	$	356	$	128	$	96	-24.4%	$	232	$	224	-3.4%
Percent employee-paid		48.5%		49.4%		35.7%		70.3%		54.8%			52.4%		63.7%
Retirement Plan Services:
First-year sales	$	1,210	$	991	$	1,059	$	736	$	819	-32.3%	$	2,408	$	1,555	-35.4%
Recurring deposits		1,990		2,100		1,914		2,473		2,078	4.4%		4,429		4,551	2.8%
Total Retirement Plan Services	$	3,200	$	3,091	$	2,973	$	3,209	$	2,897	-9.5%	$	6,837	$	6,106	-10.7%
Page 8

Lincoln Financial Group
Operating Revenues and General and Administrative Expenses By Segment
Unaudited (millions of dollars)
	For the Three Months Ended											For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
Operating Revenues
Life Insurance	$	1,705	$	1,623	$	1,688	$	1,757	$	1,760	3.2%	$	3,435	$	3,517	2.4%
Annuities		1,097		1,113		1,125		1,141		1,190	8.5%		2,244		2,331	3.9%
Group Protection		1,323		1,333		1,346		1,388		1,400	5.8%		2,626		2,788	6.2%
Retirement Plan Services		315		316		325		328		334	6.0%		633		661	4.4%
Other Operations		34		36		47		43		46	35.3%		73		90	23.3%
Total segment operating revenues	$	4,474	$	4,421	$	4,531	$	4,657	$	4,730	5.7%	$	9,011	$	9,387	4.2%
General and Administrative Expenses,
Net of Amounts Capitalized
Life Insurance	$	115	$	132	$	123	$	134	$	136	18.3%	$	233	$	270	15.9%
Annuities		108		118		110		123		135	25.0%		220		258	17.3%
Group Protection		166		182		173		191		191	15.1%		331		382	15.4%
Retirement Plan Services		69		75		75		79		81	17.4%		138		160	15.9%
Other Operations		48		70		212		38		75	56.3%		95		114	20.0%
Total	$	506	$	577	$	693	$	565	$	618	22.1%	$	1,017	$	1,184	16.4%
General and Administrative Expenses,
Net of Amounts Capitalized, as a Percentage
of Operating Revenues
Life Insurance		6.8%		8.2%		7.3%		7.6%		7.7%			6.8%		7.7%
Annuities		9.9%		10.6%		9.8%		10.8%		11.3%			9.8%		11.1%
Group Protection		12.5%		13.7%		12.9%		13.8%		13.6%			12.6%		13.7%
Retirement Plan Services		21.9%		23.7%		23.2%		24.0%		24.3%			21.8%		24.2%
Other Operations		140.2%		193.6%		457.7%		90.0%		162.1%			127.0%		127.5%
Total		11.3%		13.1%		15.3%		12.1%		13.1%			11.3%		12.6%
Page 9

Lincoln Financial Group
Operating Commissions and Other Expenses
Unaudited (millions of dollars)
	For the Three Months Ended											For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
Operating Commissions and
Other Expenses Incurred
General and administrative expenses	$	559	$	634	$	750	$	617	$	672	20.2%	$	1,121	$	1,289	15.0%
Commissions		652		660		654		615		617	-5.4%		1,308		1,232	-5.8%
Taxes, licenses and fees		79		81		88		94		81	2.5%		177		174	-1.7%
Interest and debt expense		68		71		77		83		84	23.5%		134		166	23.9%
Expenses associated with reserve financing
and letters of credit		27		27		28		30		27	0.0%		53		58	9.4%
Total adjusted operating commissions and other
expenses incurred		1,385		1,473		1,597		1,439		1,481	6.9%		2,793		2,919	4.5%
Less Amounts Capitalized
General and administrative expenses		(53)		(57)		(57)		(52)		(54)	-1.9%		(104)		(105)	-1.0%
Commissions		(280)		(283)		(287)		(241)		(240)	14.3%		(547)		(482)	11.9%
Taxes, licenses and fees		(10)		(9)		(10)		(9)		(8)	20.0%		(22)		(18)	18.2%
Total amounts capitalized		(343)		(349)		(354)		(302)		(302)	12.0%		(673)		(605)	10.1%
Total expenses incurred, net of amounts
capitalized, excluding amortization		1,042		1,124		1,243		1,137		1,179	13.1%		2,120		2,314	9.2%
Amortization
Amortization of DAC, VOBA and other intangibles		265		265		266		268		271	2.3%		529		538	1.7%
Total operating commissions and other expenses	$	1,307	$	1,389	$	1,509	$	1,405	$	1,450	10.9%	$	2,649	$	2,852	7.7%
Page 10

Lincoln Financial Group
Interest Rate Yields and Spreads By Segment
Unaudited
	For the Three Months Ended											For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
Life Insurance – Interest-Sensitive
Earned rate on reserves		4.50%		4.49%		4.47%		4.43%		4.39%	(11)		4.55%		4.41%	(14)
Variable investment income on reserves (1)		0.36%		-0.35%		0.12%		0.39%		0.55%	19		0.45%		0.47%	2
Net investment income yield on reserves		4.86%		4.14%		4.59%		4.82%		4.94%	8		5.00%		4.88%	(12)
Interest rate credited to contract holders		3.74%		3.80%		3.75%		3.77%		3.80%	6		3.76%		3.79%	3
Interest rate spread		1.12%		0.34%		0.84%		1.05%		1.14%	2		1.24%		1.09%	(15)
Base spreads excluding alternative investment income		0.99%		0.93%		0.95%		0.90%		0.84%	(15)		1.02%		0.87%	(15)
Base spreads assuming 10% annualized yield on
alternative investments		1.25%		1.18%		1.21%		1.18%		1.13%	(12)		1.28%		1.16%	(12)
Annuities
Earned rate on reserves		3.09%		3.25%		3.59%		3.75%		3.83%	74		3.04%		3.79%	75
Variable investment income on reserves (1)		0.11%		0.02%		0.02%		0.01%		0.00%	(11)		0.17%		0.01%	(16)
Net investment income yield on reserves		3.20%		3.27%		3.61%		3.76%		3.83%	63		3.21%		3.80%	59
Interest rate credited to contract holders		1.90%		1.93%		2.09%		2.25%		2.44%	54		1.88%		2.35%	47
Interest rate spread		1.30%		1.34%		1.52%		1.51%		1.39%	9		1.33%		1.45%	12
Base spreads excluding variable investment income		1.19%		1.32%		1.50%		1.50%		1.39%	20		1.16%		1.44%	28
Retirement Plan Services
Earned rate on reserves		3.49%		3.62%		3.74%		3.81%		3.89%	40		3.48%		3.85%	37
Variable investment income on reserves (1)		0.14%		0.03%		0.01%		0.00%		0.01%	(13)		0.16%		0.00%	(16)
Net investment income yield on reserves		3.63%		3.65%		3.75%		3.81%		3.90%	27		3.64%		3.85%	21
Interest rate credited to contract holders		2.55%		2.57%		2.56%		2.67%		2.71%	16		2.55%		2.69%	14
Interest rate spread		1.08%		1.08%		1.19%		1.14%		1.19%	11		1.09%		1.16%	7
Base spreads excluding variable investment income		0.94%		1.05%		1.18%		1.14%		1.18%	24		0.93%		1.16%	23
Total (2)
Earned rate (3)		3.85%		4.02%		3.98%		4.03%		4.07%	22		3.83%		4.05%	22
Variable investment income (1) (3)		0.22%		-0.14%		0.06%		0.16%		0.24%	2		0.29%		0.20%	(9)
Net investment income yield (3)		4.07%		3.88%		4.04%		4.19%		4.31%	24		4.12%		4.25%	13
(1) Variable investment income consists of commercial mortgage loan prepayment and bond make-whole premiums and investment income on alternative investments.
(2) Includes the results of all of our business segments and Other Operations.
(3) Includes investment yields on reserves and surplus.
Page 11

Lincoln Financial Group
Income (Loss) from Operations Summary
Unaudited (millions of dollars)
	For the Three Months Ended											For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
Income (Loss) from Operations, Pre-Tax
Life Insurance	$	74	$	(2,758)	$	(18)	$	(23)	$	35	-52.7%	$	96	$	12	-87.5%
Annuities		343		313		319		300		310	-9.6%		714		610	-14.6%
Group Protection		62		15		33		89		138	122.6%		4		227	NM
Retirement Plan Services		66		53		61		51		55	-16.7%		132		106	-19.7%
Other Operations		(104)		(136)		(268)		(107)		(135)	-29.8%		(198)		(242)	-22.2%
Adjusted income (loss) from operations, pre-tax	$	441	$	(2,513)	$	127	$	310	$	403	-8.6%	$	748	$	713	-4.7%
Income (Loss) from Operations, After-Tax
Life Insurance	$	63	$	(2,171)	$	(9)	$	(13)	$	33	-47.6%	$	87	$	20	-77.0%
Annuities		294		275		275		274		271	-7.8%		612		545	-10.9%
Group Protection		49		12		26		71		109	122.4%		3		180	NM
Retirement Plan Services		55		47		52		43		47	-14.5%		113		90	-20.4%
Other Operations		(87)		(112)		(210)		(87)		(106)	-21.8%		(168)		(193)	-14.9%
Adjusted income (loss) from operations, after-tax	$	374	$	(1,949)	$	134	$	288	$	354	-5.3%	$	647	$	642	-0.8%
Page 12

Lincoln Financial Group
Life Insurance – Select Earnings and Operational Data
Unaudited (millions of dollars)
	As of or For the Three Months Ended											As of or For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	283	$	289	$	297	$	285	$	293	3.5%	$	560	$	579	3.4%
Fee income		754		745		735		776		753	-0.1%		1,515		1,529	0.9%
Net investment income		664		585		650		687		707	6.5%		1,353		1,394	3.0%
Operating realized gain (loss)		(2)		(2)		(2)		(2)		(2)	0.0%		(4)		(3)	25.0%
Amortization of deferred gain on
business sold through reinsurance		4		4		4		4		4	0.0%		9		8	-11.1%
Other revenues		2		2		4		7		5	150.0%		2		10	NM
Total operating revenues		1,705		1,623		1,688		1,757		1,760	3.2%		3,435		3,517	2.4%
Operating expenses:
Benefits		926		1,041		1,079		1,152		1,073	15.9%		1,951		2,225	14.0%
Interest credited		329		329		325		328		325	-1.2%		653		653	0.0%
Policyholder liability remeasurement (gain) loss		85		2,708		(2)		(13)		14	-83.5%		147		1	-99.3%
Commissions incurred		176		177		189		148		143	-18.8%		333		291	-12.6%
Other expenses incurred		199		208		210		216		216	8.5%		401		430	7.2%
Amounts capitalized		(204)		(202)		(217)		(174)		(170)	16.7%		(387)		(343)	11.4%
Amortization		120		120		122		123		124	3.3%		241		248	2.9%
Total operating expenses		1,631		4,381		1,706		1,780		1,725	5.8%		3,339		3,505	5.0%
Income (loss) from operations before taxes		74		(2,758)		(18)		(23)		35	-52.7%		96		12	-87.5%
Federal income tax expense (benefit)		11		(587)		(9)		(10)		2	-81.8%		9		(8)	NM
Income (loss) from operations	$	63	$	(2,171)	$	(9)	$	(13)	$	33	-47.6%	$	87	$	20	-77.0%
Effective Federal Income Tax Rate		14.7%		21.3%		52.0%		45.0%		6.6%			9.5%		-68.9%
Average Account Balances, Net of Reinsurance	$	49,316	$	47,663	$	47,963	$	49,100	$	50,049	1.5%	$	50,260	$	49,575	-1.4%
In-Force Face Amount
UL and other	$	361,565	$	362,098	$	363,884	$	364,101	$	364,633	0.8%	$	361,565	$	364,633	0.8%
Term insurance		663,140		689,101		707,747		715,495		719,361	8.5%		663,140		719,361	8.5%
Total in-force face amount	$	1,024,705	$	1,051,199	$	1,071,631	$	1,079,596	$	1,083,994	5.8%	$	1,024,705	$	1,083,994	5.8%
Page 13

Lincoln Financial Group
Annuities – Select Earnings and Operational Data
Unaudited (millions of dollars)
	As of or For the Three Months Ended											As of or For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	25	$	57	$	52	$	38	$	54	116.0%	$	55	$	92	67.3%
Fee income (1)		591		574		556		540		546	-7.6%		1,219		1,086	-10.9%
Net investment income		367		348		389		421		437	19.1%		726		858	18.2%
Amortization of deferred gain on
business sold through reinsurance		6		6		6		5		5	-16.7%		13		11	-15.4%
Other revenues		108		128		122		137		148	37.0%		231		284	22.9%
Total operating revenues		1,097		1,113		1,125		1,141		1,190	8.5%		2,244		2,331	3.9%
Operating expenses:
Benefits		49		79		72		63		69	40.8%		100		132	32.0%
Interest credited		214		224		248		278		306	43.0%		422		584	38.4%
Policyholder liability remeasurement (gain) loss		1		1		-		(1)		(1)	NM		2		(2)	NM
Commissions incurred		254		254		240		240		240	-5.5%		523		480	-8.2%
Other expenses incurred		239		251		242		251		257	7.5%		497		510	2.6%
Amounts capitalized		(110)		(117)		(103)		(98)		(100)	9.1%		(228)		(199)	12.7%
Amortization		107		108		107		108		109	1.9%		214		216	0.9%
Total operating expenses		754		800		806		841		880	16.7%		1,530		1,721	12.5%
Income (loss) from operations before taxes		343		313		319		300		310	-9.6%		714		610	-14.6%
Federal income tax expense (benefit)		49		38		44		26		39	-20.4%		102		65	-36.3%
Income (loss) from operations	$	294	$	275	$	275	$	274	$	271	-7.8%	$	612	$	545	-10.9%
Effective Federal Income Tax Rate		14.2%		12.3%		13.7%		8.6%		12.6%			14.3%		10.6%
Return on Average Account Balances		79		76		77		75		73	(6)		79		74	(5)
Income (Loss) from Operations
Variable annuity		264		256		238		238		225	-14.8%		544		464	-14.7%
Fixed annuity		30		19		37		36		46	53.3%		68		81	19.1%
Account Balances, Net of Reinsurance – End-of-Period
Variable account balances without GLBs	$	59,128	$	57,720	$	61,872	$	64,824	$	68,788	16.3%	$	59,128	$	68,788	16.3%
Variable account balances with GLBs		68,468		64,057		65,877		67,274		68,460	0.0%		68,468		68,460	0.0%
Fixed account balances		14,469		14,810		14,989		15,053		14,828	2.5%		14,469		14,828	2.5%
Total account balances	$	142,065	$	136,587	$	142,738	$	147,151	$	152,076	7.0%		142,065		152,076	7.0%
Percent variable account balances with GLBs		48.2%		46.9%		46.2%		45.7%		45.0%			48.2%		45.0%
(1) Presented net of GLB and GDB hedge allowance of $152 million, $148 million, $143 million, $162 million and $161 million for the periods ended June 30, 2022, September 30, 2022,
December 31, 2022, March 31, 2023 and June 30, 2023, respectively.
Page 14

Lincoln Financial Group
Group Protection – Select Earnings and Operational Data
Unaudited (millions of dollars)
	As of or For the Three Months Ended											As of or For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
Income (Loss) from Operations
Operating revenues:
Insurance premiums	$	1,187	$	1,200	$	1,213	$	1,251	$	1,263	6.4%	$	2,356	$	2,514	6.7%
Net investment income		86		83		81		85		85	-1.2%		171		170	-0.6%
Other revenues		50		50		52		52		52	4.0%		99		104	5.1%
Total operating revenues		1,323		1,333		1,346		1,388		1,400	5.8%		2,626		2,788	6.2%
Operating expenses:
Benefits		950		994		1,030		1,037		1,019	7.3%		2,011		2,057	2.3%
Interest credited		2		1		1		1		1	-50.0%		3		2	-33.3%
Policyholder liability remeasurement (gain) loss		(11)		(22)		(48)		(100)		(121)	NM		(32)		(220)	NM
Commissions incurred		96		101		103		106		112	16.7%		190		218	14.7%
Other expenses incurred		216		235		223		248		246	13.9%		431		492	14.2%
Amounts capitalized		(24)		(23)		(29)		(25)		(28)	-16.7%		(46)		(53)	-15.2%
Amortization		32		32		33		32		33	3.1%		65		65	0.0%
Total operating expenses		1,261		1,318		1,313		1,299		1,262	0.1%		2,622		2,561	-2.3%
Income (loss) from operations before taxes		62		15		33		89		138	122.6%		4		227	NM
Federal income tax expense (benefit)		13		3		7		18		29	123.1%		1		47	NM
Income (loss) from operations	$	49	$	12	$	26	$	71	$	109	122.4%	$	3	$	180	NM
Effective Federal Income Tax Rate		21.0%		21.0%		21.0%		21.0%		21.0%			21.0%		21.0%
Loss Ratios by Product Line
Life		80.6%		71.8%		74.8%		80.4%		71.6%			85.8%		76.0%
Disability		78.7%		87.7%		85.7%		71.4%		70.7%			83.7%		71.1%
Dental		76.9%		72.0%		74.0%		76.4%		76.9%			74.0%		76.6%
Total		79.3%		81.0%		81.1%		75.0%		71.3%			84.1%		73.1%
Page 15

Lincoln Financial Group
Retirement Plan Services – Select Earnings and Operational Data
Unaudited (millions of dollars)
	As of or For the Three Months Ended											As of or For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
Income (Loss) from Operations
Operating revenues:
Fee income	$	65	$	64	$	63	$	64	$	65	0.0%	$	135	$	129	-4.4%
Net investment income		241		244		253		255		259	7.5%		479		514	7.3%
Other revenues		9		8		9		9		10	11.1%		19		18	-5.3%
Total operating revenues		315		316		325		328		334	6.0%		633		661	4.4%
Operating expenses:
Interest credited		156		161		161		167		168	7.7%		308		336	9.1%
Commissions incurred		17		20		21		21		21	23.5%		39		43	10.3%
Other expenses incurred		75		83		83		89		90	20.0%		154		177	14.9%
Amounts capitalized		(5)		(6)		(5)		(5)		(5)	0.0%		(9)		(10)	-11.1%
Amortization		6		5		4		5		5	-16.7%		9		9	0.0%
Total operating expenses		249		263		264		277		279	12.0%		501		555	10.8%
Income (loss) from operations before taxes		66		53		61		51		55	-16.7%		132		106	-19.7%
Federal income tax expense (benefit)		11		6		9		8		8	-27.3%		19		16	-15.8%
Income (loss) from operations	$	55	$	47	$	52	$	43	$	47	-14.5%	$	113	$	90	-20.4%
Effective Federal Income Tax Rate		15.6%		12.3%		15.0%		16.4%		14.9%			14.8%		15.6%
Return on Average Account Balances		24		21		24		19		20	(4)		24		19	(5)
Pre-tax Net Margin		41.1%		34.2%		37.1%		31.8%		33.5%			40.7%		32.7%
Net Flows by Market
Small Market	$	80	$	157	$	174	$	148	$	99	23.8%	$	(36)	$	246	NM
Mid - Large Market		1,073		899		298		711		408	-62.0%		2,404		1,119	-53.5%
Multi-Fund® and Other		(240)		(251)		(421)		(324)		(306)	-27.5%		(528)		(629)	-19.1%
Net Flows – Trailing Twelve Months	$	1,394	$	2,199	$	2,696	$	2,304	$	1,592	14.2%	$	1,394	$	1,592	14.2%
Page 16

Lincoln Financial Group
Other Operations – Select Earnings and Operational Data
Unaudited (millions of dollars)
	For the Three Months Ended											For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
Other Operations
Operating revenues:
Insurance premiums	$	3	$	2	$	2	$	5	$	2	-33.3%	$	4	$	7	75.0%
Net investment income		40		35		39		35		38	-5.0%		81		73	-9.9%
Other revenues		(9)		(1)		6		3		6	166.7%		(12)		10	183.3%
Total operating revenues		34		36		47		43		46	35.3%		73		90	23.3%
Operating expenses:
Benefits		14		20		19		20		14	0.0%		25		36	44.0%
Interest credited		9		9		8		10		9	0.0%		21		18	-14.3%
Policyholder liability remeasurement (gain) loss		2		-		2		-		1	-50.0%		3		-	-100.0%
Commissions and other expenses		1		28		160		13		32	NM		13		48	269.2%
Interest and debt expense		68		71		77		83		84	23.5%		134		166	23.9%
Spark program expense		44		44		49		24		41	-6.8%		75		64	-14.7%
Total operating expenses		138		172		315		150		181	31.2%		271		332	22.5%
Income (loss) from operations before taxes		(104)		(136)		(268)		(107)		(135)	-29.8%		(198)		(242)	-22.2%
Federal income tax expense (benefit)		(17)		(24)		(58)		(20)		(29)	-70.6%		(30)		(49)	-63.3%
Income (loss) from operations	$	(87)	$	(112)	$	(210)	$	(87)	$	(106)	-21.8%	$	(168)	$	(193)	-14.9%
Page 17

Lincoln Financial Group
Consolidated – DAC, VOBA, DSI and DFEL Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended											For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
DAC, VOBA and DSI
Balance as of beginning-of-period	$	11,965	$	12,050	$	12,140	$	12,235	$	12,277	2.6%	$	11,896	$	12,235	2.8%
Deferrals		345		350		357		306		304	-11.9%		674		610	-9.5%
Operating amortization		(260)		(260)		(262)		(264)		(265)	-1.9%		(520)		(529)	-1.7%
Balance as of end-of-period	$	12,050	$	12,140	$	12,235	$	12,277	$	12,316	2.2%	$	12,050	$	12,316	2.2%
DFEL
Balance as of beginning-of-period	$	4,416	$	4,623	$	4,834	$	5,052	$	5,250	18.9%	$	4,225	$	5,052	19.6%
Deferrals		270		273		284		267		271	0.4%		526		538	2.3%
Operating amortization		(63)		(62)		(66)		(69)		(71)	-12.7%		(128)		(140)	-9.4%
Balance as of end-of-period	$	4,623	$	4,834	$	5,052	$	5,250	$	5,450	17.9%	$	4,623	$	5,450	17.9%
DAC, VOBA, DSI and DFEL
Balance as of End-of-Period, After-Tax	$	5,867	$	5,772	$	5,675	$	5,551	$	5,424	-7.6%	$	5,867	$	5,424	-7.6%
Page 18

Lincoln Financial Group
Life Insurance – Account Balance Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended											For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
General Account
Balance as of beginning-of-period	$	38,005	$	37,791	$	37,691	$	37,694	$	37,533	-1.2%	$	38,200	$	37,694	-1.3%
Gross deposits		935		963		1,110		926		907	-3.0%		1,848		1,834	-0.8%
Withdrawals and deaths		(300)		(284)		(328)		(393)		(323)	-7.7%		(632)		(717)	-13.4%
Net flows		635		679		782		533		584	-8.0%		1,216		1,117	-8.1%
Transfers between general and separate accounts		34		(12)		(14)		32		44	29.4%		28		76
Policyholder assessments		(1,121)		(1,123)		(1,138)		(1,128)		(1,120)	0.1%		(2,234)		(2,248)	-0.6%
Reinvested interest credited		373		377		374		373		371	-0.5%		744		744	0.0%
Change in fair value of embedded derivative instruments		(135)		(21)		(1)		29		46	134.1%		(163)		75
Balance as of end-of-period, gross		37,791		37,691		37,694		37,533		37,458	-0.9%		37,791		37,458	-0.9%
Account balances reinsured		(5,584)		(5,575)		(5,558)		(5,525)		(5,527)	1.0%		(5,584)		(5,527)	1.0%
Balance as of end-of-period, net	$	32,207	$	32,116	$	32,136	$	32,008	$	31,931	-0.9%	$	32,207	$	31,931	-0.9%
Separate Account
Balance as of beginning-of-period	$	23,376	$	20,327	$	19,382	$	20,920	$	22,162	-5.2%	$	24,785	$	20,920	-15.6%
Gross deposits		524		443		495		394		426	-18.7%		962		821	-14.7%
Withdrawals and deaths		(96)		(120)		(128)		(75)		(78)	18.8%		(205)		(154)	24.9%
Net flows		428		323		367		319		348	-18.7%		757		667	-11.9%
Transfers between general and separate accounts		(34)		12		14		(32)		(44)	-29.4%		(28)		(76)
Policyholder assessments		(233)		(236)		(244)		(238)		(238)	-2.1%		(458)		(476)	-3.9%
Change in market value and reinvestment		(3,210)		(1,044)		1,401		1,193		1,181	136.8%		(4,729)		2,374	150.2%
Balance as of end-of-period, gross		20,327		19,382		20,920		22,162		23,409	15.2%		20,327		23,409	15.2%
Account balances reinsured		(4,498)		(4,209)		(4,421)		(4,606)		(4,805)	-6.8%		(4,498)		(4,805)	-6.8%
Balance as of end-of-period, net	$	15,829	$	15,173	$	16,499	$	17,556	$	18,604	17.5%	$	15,829	$	18,604	17.5%
Total
Balance as of beginning-of-period	$	61,381	$	58,118	$	57,073	$	58,614	$	59,695	-2.7%	$	62,985	$	58,614	-6.9%
Gross deposits		1,459		1,406		1,605		1,320		1,333	-8.6%		2,810		2,655	-5.5%
Withdrawals and deaths		(396)		(404)		(456)		(468)		(401)	-1.3%		(837)		(871)	-4.1%
Net flows		1,063		1,002		1,149		852		932	-12.3%		1,973		1,784	-9.6%
Policyholder assessments		(1,354)		(1,359)		(1,382)		(1,366)		(1,358)	-0.3%		(2,692)		(2,724)	-1.2%
Change in market value and reinvestment		(2,837)		(667)		1,775		1,566		1,552	154.7%		(3,985)		3,118	178.2%
Change in fair value of embedded derivative instruments		(135)		(21)		(1)		29		46	134.1%		(163)		75	146.0%
Balance as of end-of-period, gross		58,118		57,073		58,614		59,695		60,867	4.7%		58,118		60,867	4.7%
Account balances reinsured		(10,082)		(9,784)		(9,979)		(10,131)		(10,332)	-2.5%		(10,082)		(10,332)	-2.5%
Balance as of end-of-period, net	$	48,036	$	47,289	$	48,635	$	49,564	$	50,535	5.2%	$	48,036	$	50,535	5.2%
Page 19

Lincoln Financial Group
Annuities – Account Balance Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended											For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
Fixed Annuities
Balance as of beginning-of-period	$	22,307	$	22,099	$	22,670	$	23,365	$	24,019	7.7%	$	22,552	$	23,365	3.6%
Gross deposits		523		1,137		1,252		1,317		602	15.1%		895		1,919	114.4%
Full surrenders and deaths		(457)		(489)		(547)		(728)		(864)	-89.1%		(877)		(1,592)	-81.5%
Other contract benefits		(144)		(134)		(181)		(161)		(167)	-16.0%		(286)		(328)	-14.7%
Net flows		(78)		514		524		428		(429)	NM		(268)		(1)	99.6%
Policyholder assessments		(13)		(10)		(12)		(15)		(14)	-7.7%		(28)		(28)	0.0%
Reinvested interest credited		131		134		143		154		159	21.4%		255		312	22.4%
Change in fair value of embedded derivative instruments		(248)		(67)		40		87		78	131.5%		(412)		165	140.0%
Balance as of end-of-period, gross		22,099		22,670		23,365		24,019		23,813	7.8%		22,099		23,813	7.8%
Account balances reinsured		(7,630)		(7,860)		(8,376)		(8,966)		(8,985)	-17.8%		(7,630)		(8,985)	-17.8%
Balance as of end-of-period, net	$	14,469	$	14,810	$	14,989	$	15,053	$	14,828	2.5%	$	14,469	$	14,828	2.5%
Variable Annuities
Balance as of beginning-of-period	$	145,382	$	127,604	$	121,785	$	127,757	$	132,105	-9.1%	$	155,813	$	127,757	-18.0%
Gross deposits		2,178		2,095		1,946		1,847		1,958	-10.1%		4,508		3,805	-15.6%
Full surrenders and deaths		(1,366)		(1,302)		(1,210)		(1,592)		(1,621)	-18.7%		(2,933)		(3,213)	-9.5%
Other contract benefits		(1,019)		(985)		(1,108)		(1,014)		(1,016)	0.3%		(2,118)		(2,030)	4.2%
Net flows		(207)		(192)		(372)		(759)		(679)	NM		(543)		(1,438)	NM
Policyholder assessments		(655)		(638)		(619)		(624)		(628)	4.1%		(1,347)		(1,252)	7.1%
Change in market value and reinvestment		(14,974)		(4,650)		5,804		5,191		5,074	133.9%		(23,980)		10,265	142.8%
Change in fair value of embedded derivative instruments		(1,942)		(339)		1,159		540		1,383	171.2%		(2,339)		1,923	182.2%
Balance as of end-of-period, gross		127,604		121,785		127,757		132,105		137,255	7.6%		127,604		137,255	7.6%
Account balances reinsured		(8)		(8)		(8)		(7)		(7)	12.5%		(8)		(7)	12.5%
Balance as of end-of-period, net	$	127,596	$	121,777	$	127,749	$	132,098	$	137,248	7.6%	$	127,596	$	137,248	7.6%
Total
Balance as of beginning-of-period	$	167,689	$	149,703	$	144,455	$	151,122	$	156,124	-6.9%	$	178,365	$	151,122	-15.3%
Gross deposits		2,701		3,232		3,198		3,164		2,560	-5.2%		5,403		5,724	5.9%
Full surrenders and deaths		(1,823)		(1,791)		(1,757)		(2,320)		(2,485)	-36.3%		(3,810)		(4,805)	-26.1%
Other contract benefits		(1,163)		(1,119)		(1,289)		(1,175)		(1,183)	-1.7%		(2,404)		(2,358)	1.9%
Net flows		(285)		322		152		(331)		(1,108)	NM		(811)		(1,439)	-77.4%
Policyholder assessments		(668)		(648)		(631)		(639)		(642)	3.9%		(1,375)		(1,280)	6.9%
Change in market value, reinvestment and interest credited		(14,843)		(4,516)		5,947		5,345		5,233	135.3%		(23,725)		10,577	144.6%
Change in fair value of embedded derivative instruments		(2,190)		(406)		1,199		627		1,461	166.7%		(2,751)		2,088	175.9%
Balance as of end-of-period, gross		149,703		144,455		151,122		156,124		161,068	7.6%		149,703		161,068	7.6%
Account balances reinsured		(7,638)		(7,868)		(8,384)		(8,973)		(8,992)	-17.7%		(7,638)		(8,992)	-17.7%
Balance as of end-of-period, net	$	142,065	$	136,587	$	142,738	$	147,151	$	152,076	7.0%	$	142,065	$	152,076	7.0%
Page 20

Lincoln Financial Group
Retirement Plan Services – Account Balance Roll Forwards
Unaudited (millions of dollars)
	For the Three Months Ended											For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
General Account
Balance as of beginning-of-period	$	23,958	$	24,917	$	25,276	$	25,138	$	24,994	4.3%	$	23,579	$	25,138	6.6%
Gross deposits		1,389		994		787		701		616	-55.7%		2,231		1,317	-41.0%
Withdrawals		(743)		(873)		(1,119)		(1,113)		(981)	-32.0%		(1,586)		(2,094)	-32.0%
Net flows		646		121		(332)		(412)		(365)	NM		645		(777)	NM
Transfers between fixed and variable accounts		161		79		36		103		(363)	NM		395		(259)	NM
Policyholder assessments		(3)		(3)		(3)		(3)		(3)	0.0%		(7)		(7)	0.0%
Reinvested interest credited		155		162		161		168		167	7.7%		305		335	9.8%
Balance as of end-of-period	$	24,917	$	25,276	$	25,138	$	24,994	$	24,430	-2.0%	$	24,917	$	24,430	-2.0%
Separate Account and Mutual Funds
Balance as of beginning-of-period	$	71,376	$	61,782	$	59,064	$	63,592	$	67,985	-4.8%	$	75,465	$	63,592	-15.7%
Gross deposits		1,811		2,097		2,186		2,508		2,281	26.0%		4,606		4,789	4.0%
Withdrawals		(1,544)		(1,413)		(1,803)		(1,561)		(1,715)	-11.1%		(3,411)		(3,276)	4.0%
Net flows		267		684		383		947		566	112.0%		1,195		1,513	26.6%
Transfers between fixed and variable accounts		(166)		(42)		(55)		(104)		370	NM		(396)		264	166.7%
Policyholder assessments		(60)		(57)		(57)		(58)		(60)	0.0%		(123)		(116)	5.7%
Change in market value and reinvestment		(9,635)		(3,303)		4,257		3,608		3,295	134.2%		(14,359)		6,903	148.1%
Balance as of end-of-period	$	61,782	$	59,064	$	63,592	$	67,985	$	72,156	16.8%	$	61,782	$	72,156	16.8%
Total
Balance as of beginning-of-period	$	95,334	$	86,699	$	84,340	$	88,730	$	92,979	-2.5%	$	99,044	$	88,730	-10.4%
Gross deposits		3,200		3,091		2,973		3,209		2,897	-9.5%		6,837		6,106	-10.7%
Withdrawals		(2,287)		(2,286)		(2,922)		(2,674)		(2,696)	-17.9%		(4,997)		(5,370)	-7.5%
Net flows		913		805		51		535		201	-78.0%		1,840		736	-60.0%
Transfers between fixed and variable accounts		(5)		37		(19)		(1)		7	240.0%		(1)		5	NM
Policyholder assessments		(63)		(60)		(60)		(61)		(63)	0.0%		(130)		(123)	5.4%
Change in market value and reinvestment		(9,480)		(3,141)		4,418		3,776		3,462	136.5%		(14,054)		7,238	151.5%
Balance as of end-of-period	$	86,699	$	84,340	$	88,730	$	92,979	$	96,586	11.4%	$	86,699	$	96,586	11.4%
Page 21

Lincoln Financial Group
Fixed-Income Asset Class
Unaudited (millions of dollars)
	As of 6/30/22				As of 12/31/22				As of 6/30/23
	Amount		%		Amount		%		Amount		%
Fixed Maturity AFS Securities, Net of Allowance for Credit Losses, at Amortized Cost
Industry corporate bonds:
Financial services	$	17,372		15.9%	$	17,762		15.9%	$	17,279		15.5%
Basic industry		4,487		4.1%		4,353		3.9%		4,168		3.7%
Capital goods		7,349		6.7%		7,374		6.6%		7,169		6.4%
Communications		4,271		3.9%		4,239		3.8%		4,319		3.9%
Consumer cyclical		6,052		5.5%		6,056		5.4%		5,804		5.2%
Consumer non-cyclical		17,163		15.7%		17,080		15.3%		17,200		15.5%
Energy		4,875		4.4%		4,776		4.3%		4,605		4.1%
Technology		5,377		4.9%		5,581		5.0%		5,601		5.0%
Transportation		3,580		3.3%		3,665		3.3%		3,691		3.3%
Industrial other		2,294		2.1%		2,330		2.1%		2,326		2.1%
Utilities		14,131		12.9%		14,204		12.8%		14,327		13.0%
Government-related entities		1,833		1.7%		1,820		1.6%		1,832		1.6%
Residential mortgage-backed securities ("RMBS")
Agency backed		1,878		1.7%		1,845		1.7%		1,835		1.6%
Non-agency backed		360		0.3%		364		0.3%		364		0.3%
Commercial mortgage-backed securities ("CMBS")		1,708		1.6%		1,917		1.7%		1,915		1.7%
Asset-backed securities ("ABS")
Collateralized loan obligations ("CLOs")		7,471		6.8%		8,498		7.6%		8,862		8.0%
Other ABS		2,802		2.6%		3,294		2.9%		3,695		3.3%
Municipals		5,422		4.9%		5,410		4.8%		5,268		4.7%
Government:
United States		414		0.4%		405		0.4%		396		0.5%
Foreign		362		0.3%		348		0.3%		312		0.3%
Hybrid & redeemable preferred securities		379		0.3%		364		0.3%		361		0.3%
Total fixed maturity AFS securities, net of allowance for credit losses, at amortized cost		109,580		100.0%		111,685		100.0%		111,329		100.0%
Trading Securities		4,012				3,833				3,226
Equity Securities		395				383				386
Total fixed maturity AFS, trading and equity securities	$	113,987			$	115,901			$	114,941
Page 22

Lincoln Financial Group
Fixed-Income Credit Quality
Unaudited (millions of dollars)
	As of 6/30/22				As of 12/31/22				As of 6/30/23
	Amount		%		Amount		%		Amount		%
Fixed Maturity AFS Securities, Net of Allowance for Credit Losses, at Amortized Cost (1)
NAIC 1 (AAA-A)	$	61,622		56.2%	$	63,741		57.1%	$	64,997		58.4%
NAIC 2 (BBB)		44,111		40.3%		44,103		39.5%		42,985		38.6%
Total investment grade		105,733		96.5%		107,844		96.6%		107,982		97.0%
NAIC 3 (BB)		2,187		2.0%		2,101		1.9%		1,745		1.6%
NAIC 4 (B)		1,544		1.4%		1,679		1.4%		1,495		1.3%
NAIC 5 (CCC and lower)		114		0.1%		59		0.1%		84		0.1%
NAIC 6 (in or near default)		2		0.0%		2		0.0%		23		0.0%
Total below investment grade		3,847		3.5%		3,841		3.4%		3,347		3.0%
Total	$	109,580		100.0%	$	111,685		100.0%	$	111,329		100.0%
Commercial Mortgage Loans, at Amortized Cost (1)(2)
CM1 (AAA-A)	$	13,623		80.7%	$	13,361		78.5%	$	13,218		77.7%
CM2 (BBB)		3,004		17.8%		3,382		19.9%		3,614		21.2%
CM3-7 (BB and lower)		259		1.5%		271		1.6%		181		1.1%
Total	$	16,886		100.0%	$	17,014		100.0%	$	17,013		100.0%
Total Fixed Maturity AFS Securities and Commercial Mortgage Loans, at Amortized Cost (1)(2)
AAA-A	$	75,245		59.5%	$	77,102		59.9%	$	78,215		60.9%
BBB		47,115		37.3%		47,485		36.9%		46,599		36.4%
BB and lower		4,106		3.2%		4,112		3.2%		3,528		2.7%
Total	$	126,466		100.0%	$	128,699		100.0%	$	128,342		100.0%
(1) Ratings are based upon the designations determined and provided by the National Association of Insurance Commissioners (“NAIC”) or based upon ratings from credit rating
agencies to derive the NAIC designation.
(2) CM ratings reflect the risk-based capital risk category for commercial mortgage loans.  Letter ratings are assumed NAIC equivalent ratings where NAIC 1 = CM1,  NAIC 2 = CM2
and NAIC 3-6 = CM3-7.
Page 23

Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars)
	For the Three Months Ended											For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
Net Income
Net income (loss)	$	840	$	(1,775)	$	812	$	(881)	$	511	-39.2%	$	2,321	$	(370)	NM
Less:
MRB-related impacts, after-tax		(399)		612		1,219		(506)		1,585	NM		665		1,079	62.3%
Investment and reinsurance-related realized gain (loss), after-tax:
Changes in CECL reserve for mortgage loans on real
estate		(3)		(7)		(6)		(3)		(2)	33.3%		11		(5)	NM
Changes in CECL reserve for reinsurance-related assets		3		(93)		2		(1)		(2)	NM		2		(3)	NM
Changes in the credit loss allowance for fixed maturity
AFS securities		(3)		(4)		(4)		(14)		1	133.3%		(4)		(13)	NM
Total credit loss adjustments		(3)		(104)		(8)		(18)		(3)	0.0%		9		(21)	NM
Changes in investments and reinsurance-related
embedded derivatives (1)(2)		(17)		20		10		(136)		(659)	NM		(29)		(795)	NM
Total investment and reinsurance-related realized
gain (loss), after-tax		(20)		(84)		2		(154)		(662)	NM		(20)		(816)	NM
Changes in fair value of GLB and GDB hedge
instruments, net of hedge allowance, after-tax		868		302		(516)		(377)		(708)	NM		926		(1,084)	NM
Indexed product net derivative results, after-tax		23		(20)		(31)		(135)		(53)	NM		109		(188)	NM
Benefit ratio unlocking, after-tax		(6)		(2)		4		3		2	133.3%		(6)		4	166.7%
Impairment of intangibles		-		(634)		-		-		-	NM		-		-	NM
Transaction and integration costs related to mergers,											NM					NM
acquisitions and divestitures, after-tax (3)		-		-		-		-		(7)	NM		-		(7)	NM
Total adjustments		466		174		678		(1,169)		157	-66.3%		1,674		(1,012)	NM
Adjusted income (loss) from operations	$	374	$	(1,949)	$	134	$	288	$	354	-5.3%	$	647	$	642	-0.8%
(1) Includes a $493 million after-tax impairment of fixed maturity AFS securities in an unrealized loss position for the three and six months ended June 30, 2023, resulting from the Company's
intent to sell these securities as part of the previously announced Fortitude Re reinsurance transaction.  Within the investment portfolio anticipated to be sold in the transaction, there are
additional fixed maturity AFS securities in an unrealized gain position of approximately $374 million after-tax as of June 30, 2023.  Pursuant to the applicable accounting guidance, the
Company impaired the securities in a loss position down to fair market value upon entry into the agreement in the second quarter and will recognize a gain for any securities in an
unrealized gain position at the time when the transaction closes.
(2) Includes net losses on disposals of $(31) million and $(34) million on fixed maturity AFS securities, after-tax, and mark-to-market adjustments of $(11) million and $(11) million on
equity securities, after-tax, for the three months ended March 31, 2023, and June 30, 2023, respectively.
(3) Includes costs pertaining to the Fortitude Re reinsurance transaction.
Page 24

Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars, except per share data)
	For the Three Months Ended											For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
Revenues
Total revenues	$	5,577	$	4,672	$	3,841	$	3,814	$	2,929	-47.5%	$	10,297	$	6,743	-34.5%
Less:
Investment and reinsurance-related realized gain (loss)		(25)		(105)		3		(196)		(838)	NM		(25)		(1,034)	NM
Changes in fair value of GLB and GDB hedge
instruments, net of hedge allowance		1,099		382		(653)		(476)		(896)	NM		1,173		(1,372)	NM
Indexed product net derivative results		29		(25)		(39)		(171)		(67)	NM		138		(238)	NM
Adjusted operating revenues	$	4,474	$	4,421	$	4,531	$	4,657	$	4,730	5.7%	$	9,011	$	9,387	4.2%
Earnings (Loss) Per Common Share – Diluted
Net income (loss)	$	4.83	$	(10.47)	$	4.73	$	(5.37)	$	2.94	-39.1%	$	13.25	$	(2.41)	NM
Less:
MRB-related impacts, after-tax		(2.30)		3.60		7.14		(3.00)		9.32	NM		3.80		6.37	67.6%
Investment and reinsurance-related realized gain (loss),
after-tax		(0.12)		(0.49)		0.01		(0.91)		(3.90)	NM		(0.12)		(4.82)	NM
Changes in fair value of GLB and GDB hedge
instruments, net of hedge allowance, after-tax		5.03		1.77		(3.02)		(2.23)		(4.16)	NM		5.31		(6.40)	NM
Indexed product net derivative results, after-tax		0.13		(0.11)		(0.18)		(0.79)		(0.31)	NM		0.63		(1.11)	NM
Benefit ratio unlocking, after-tax		(0.04)		(0.02)		0.02		0.02		0.01	125.0%		(0.04)		0.03	175.0%
Impairment of intangibles		-		(3.73)		-		-		-	NM		-		-	NM
Transaction and integration costs related to
mergers, acquisitions and divestitures, after-tax		-		-		-		-		(0.04)	NM		-		(0.04)	NM
Adjustment attributable to using different average
diluted shares for adjusted income from operations
as compared to net loss (1)		-		-		-		0.02		-	NM		-		0.02	NM
Adjusted income (loss) from operations	$	2.13	$	(11.49)	$	0.76	$	1.52	$	2.02	-5.2%	$	3.67	$	3.54	-3.5%
(1) In periods where a net loss or adjusted loss from operations is presented, basic shares are used in the diluted EPS and adjusted diluted EPS calculations, as the use of diluted shares
would result in a lower loss per share.  Due to reporting adjusted income from operations per common share on a different share basis than net loss per common share, we have
included an adjustment to reconcile the two metrics.
Page 25

Lincoln Financial Group
Select GAAP to Non-GAAP Reconciliations
Unaudited (millions of dollars, except per share data)
	For the Three Months Ended											For the Six Months Ended
	6/30/22		9/30/22		12/31/22		3/31/23		6/30/23		Change	6/30/22		6/30/23		Change
Stockholders’ Equity, End-of-Period
Stockholders' equity	$	9,331	$	2,783	$	5,102	$	6,732	$	5,819	-37.6%	$	9,331	$	5,819	-37.6%
Less:
Preferred stock		-		-		986		986		986	NM		-		986	NM
AOCI		(2,280)		(6,940)		(6,352)		(3,754)		(5,104)	NM		(2,280)		(5,104)	NM
Stockholders’ equity, excluding AOCI and preferred
stock		11,611		9,723		10,468		9,500		9,937	-14.4%		11,611		9,937	-14.4%
MRB-related impacts		(2,483)		(1,872)		(652)		(1,158)		426	117.2%		(2,483)		426	117.2%
GLB and GDB hedge instruments gains (losses)(1)		N/A		N/A		N/A		(539)		(1,407)			N/A		(1,407)
Adjusted stockholders' equity	$	14,094	$	11,595	$	11,120	$	11,197	$	10,918	-22.5%	$	14,094		10,918	-22.5%
Stockholders’ Equity, Average
Stockholders' equity	$	11,793	$	6,057	$	3,943	$	5,917	$	6,276	-46.8%	$	14,439	$	6,096	-57.8%
Less:
Preferred stock		-		-		493		986		986	NM		-		986	NM
AOCI		518		(4,610)		(6,646)		(5,053)		(4,429)	NM		3,584		(4,741)	NM
Stockholders’ equity, excluding AOCI and preferred
stock		11,275		10,667		10,096		9,984		9,719	-13.8%		10,855		9,851	-9.2%
MRB-related impacts		(2,284)		(2,177)		(1,262)		(905)		(366)	84.0%		(2,450)		(636)	74.0%
GLB and GDB hedge instruments gains (losses)(1)		N/A		N/A		N/A		(269)		(973)			N/A		(621)
Adjusted average stockholders' equity	$	13,559	$	12,844	$	11,358	$	11,158	$	11,058	-18.4%	$	13,305	$	11,108	-16.5%
Book Value Per Common Share
Book value per share	$	54.81	$	16.45	$	24.32	$	33.89	$	28.49	-48.0%	$	54.81	$	28.49	-48.0%
Less:
AOCI		(13.40)		(41.01)		(37.54)		(22.15)		(30.09)	NM		(13.40)		(30.09)	NM
Book value per share, excluding AOCI		68.21		57.46		61.86		56.04		58.58	-14.1%		68.21		58.58	-14.1%
Less:
MRB-related gains (losses)		(14.57)		(11.07)		(3.86)		(6.83)		2.51	117.2%		(14.57)		2.51	117.2%
GLB and GDB hedge instruments gains (losses)(1)		N/A		N/A		N/A		(3.18)		(8.30)			N/A		(8.30)
Adjusted book value per share	$	82.78	$	68.53	$	65.72	$	66.05	$	64.37	-22.2%	$	82.78	$	64.37	-22.2%
(1) For periods beginning on or after January 1, 2023, gains (losses) on our GLB and GDB hedge instruments are excluded from adjusted stockholders' equity to align to the
updated hedge program.
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Document And Entity Information	Aug. 02, 2023
Document Type	8-K
Document Period End Date	Aug. 02, 2023
Entity Registrant Name	Lincoln National Corporation
Entity Incorporation, State or Country Code	IN
Entity File Number	1-6028
Entity Tax Identification Number	35-1140070
Entity Address, Address Line One	150 N. Radnor Chester Road
Entity Address, City or Town	Radnor
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19087
City Area Code	484
Local Phone Number	583-1400
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock
Trading Symbol	LNC
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Central Index Key	0000059558
Amendment Flag	false
Series D Preferred Stock [Member]
Title of 12(b) Security	Depositary Shares, each representing a
Trading Symbol	LNC PRD
Security Exchange Name	NYSE